Alaska Permanent adds 26 PE funds to ‘impaired’ list

Alaska Permanent Fund believes 26 private equity funds in its portfolio will fail to return carrying costs, with the system writing down about $147 million in value, according to meeting documents.

The write-down will not impact Alaska Permanent’s private equity strategy, a spokesperson told Buyouts. The system has no plans to shop the funds on the secondaries market.

“To reflect the impairment in statutory net income and fund balance classifications, $147 million of unrealized losses were realized through a write-down of cost to fair value,” Alaska Permanent Fund’s meeting materials read. “These impairments have no impact on the carrying value of investments or on the net increase in the fair value of private credit investments.”

Meeting documents from the pension fund’s September 5 meeting indicated that 26 private equity funds, along with four private credit and two infrastructure funds, would “more than likely” fail to return on the carrying cost over the remaining estimated holding period of the assets.

This is a continuation of a trend that Alaska Permanent Fund saw last year, when 19 private equity funds in the portfolio were determined to be impaired. An undisclosed portion of the 19 private equity funds from last year carried over to the 26 funds identified in 2024, according to a spokesperson for Alaska Permanent Fund.

The impaired funds make up around 0.07% of the Alaska Permanent Fund’s value, according to the permanent fund. A spokesperson told Buyouts that the pension fund will be retaining its existing relationships with the funds and the LP’s categorization of the funds as impaired will not impact their standings.

In its meeting materials, the Alaska Permanent Fund highlighted that it had future funding commitments of $4.2 billion for private equity, along with $1.4 billion for private credit.

The pension fund also reported unrealized gains of $4.9 billion from its private equity assets, after making an additional $35 million worth of investments in the private equity sector compared to last year.