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Capital Constellation commitments reach $1 billion as 2 new asset owners sign on – Pensions & Investments

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AP3, Stockholm, and Kuwait Investment Authority have joined three other sovereign wealth funds in Capital Constellation with commitments totaling $300 million, increasing the total commitment to $1 billion.

The joint venture was originally launched in 2018 to help the $65.8 billion Alaska Permanent Fund, Juneau, invest in emerging private equity and alternative investment firms.

The Alaska fund originally committed $200 million alongside RPMI, the manager of the £28 billion ($33.9 billion) Railways Pension Scheme, London, which also committed $200 million, while the more than $100 billion Public Institution for Social Security of Kuwait committed $300 million.

Wafra Group, which is owned by the Kuwait entity, is the investment manager for the joint venture.

The individual amounts of the individual commitments by the $592 billion Kuwait Investment Authority and 374 billion Swedish kronor ($44.1 billion) AP3, Stockholm, were not provided.

What Capital Constellation set out to do is to seed the next generation of promising alternative investment managers, said Daniel Adamson, president of Capital Constellation and senior managing director of money manager Wafra Group in an interview.

So far, Capital Constellation has invested in four managers — including real estate, infrastructure and energy — and joint venture officials expect to invest in two to four managers per year, Mr. Adamson said. The names of those funds were not provided.

“We’re pleased to be joining this group of institutional investors and emerging investment talent — we expect the collaboration within the Constellation network to benefit our plan,” said Bengt Hellstrom, head of alternative investments at AP3, in the release.

Angela Rodell, CEO of Alaska Permanent Fund Corp., said Thursday in an interview at the annual meeting of the International Forum of Sovereign Wealth Funds in Juneau, that the joint venture provides an “alignment of interests of sovereign wealth funds” with similar time horizons and similar senses of governance.

Arleen Jacobius contributed to this story.