Montana Board of Investments‘ private equity portfolio has a 9.8 percent exposure to secondaries funds, according to documents from its November board meeting.
The roughly 10 percent exposure is valued at $165.9 million, of which $40 million is unfunded.
Montana’s most recent secondaries commitments include $25 million to HarbourVest Partners’ Dover Street VIII and $20 million to Tenex Capital Partners – Secondary.
In total there are eight secondaries funds in the portfolio which are generating a 1.47x investment multiple and a 13.67 net internal rate of return since inception, as of 30 June.
Secondaries funds are generating the third highest IRR in the portfolio. Distressed funds lead, generating 24.09 percent since inception, followed by venture capital which is generating a 15.73 percent IRR since inception, as of 30 June.
The Helena-based pension allocates about 11 percent of its assets to private equity. Total, it manages $9.8 billion of assets as of 30 September.
|Fund name||Vintage year||Commitment||Net IRR (%)||Investment multiple|
|HarbourVest Dover Street VII||2008||$2,000,000||13.54||1.49|
|HarbourVest Dover Street VIII||2012||$25,000,000||64.39||1.41|
|Lexington Capital Partners V||2001||$50,000,000||18.44||1.68|
|Lexington Capital Partners VI||2005||$50,000,000||7.34||1.36|
|Lexington Capital Partners VII||2009||$45,000,000||19.75||1.44|
|Lexington Middle Market Investors II||2008||$10,000,000||14.96||1.36|
|Portfolio Advisors Secondary Fund||2008||$15,000,000||17.86||1.52|
|Tenex Capital Partners – Secondary||2012||$20,000,000||12.16||1.16|
Source: Montana Board of Investments
This story has been updated to remove fund of funds manager Axiom Asia from the list of secondaries funds and replace it with HarbourVest Dover Street VII and VIII.