Arizona Lifts PE Target to 15%; Wyoming Taps UBS for $915M Real Estate

Arizona Lifts PE Target to 15%

Wyoming Taps UBS for $915M in Real Estate

Three major US public investors held board meetings this week, with staff at Wyoming, Alaska and Arizona detailing shifts to their real estate, private equity, infrastructure, and credit allocations.

Wyoming State Loan and Investment Board approved a build-out of its noncore real estate and infrastructure portfolios alongside new commitments to credit secondaries, multi-asset credit and international equity. The board hired UBS Asset Management to run two fund-of-one vehicles targeting a combined $915M in deployment, committed $150M to Pantheon Credit Opportunities Fund IV, hired Bain Capital Credit for a $350M multi-asset credit account, and hired Orbis International Equity to manage about $200M. Consultant RVK reported the state's $35.5B fund returned about 12.5% for the fiscal year.

Among other US allocators, Alaska Permanent Fund Corporation, the $91.9B sovereign wealth fund, is concentrating private equity commitments in the middle and lower-middle market and avoiding AI-only vehicles, instead relying on venture managers including Sequoia, Index, Mayfield and Lightspeed plus a direct stake in Anthropic. Private equity, now 16% of the fund against a 17% target, returned 10.45% for the fiscal year, trailing its benchmark but ranking top quartile among peers. Trustees also approved a charter creating a Benchmark Review Committee to review asset-class benchmarks annually.

Arizona State Retirement System is lifting its private equity target to 15% from 13%, cutting credit to 20% from 22%, and building a real assets sleeve of up to 3% focused on energy and power infrastructure. The added private equity allocation will flow mostly to secondaries and co-investments rather than new primary commitments, while the credit target cut reflects a forward return target reduced to 8%–9% from 9%–10% amid a crowded lending market. The $66.7B plan is also exploring ways to pare back a data center position in real estate.

In GP fundraising, H.I.G. Capital filed Form Ds for H.I.G. Infrastructure Partners II, a follow-up to its $1.3B debut fund that closed in 2024; and Headline closed its eighth early-stage European fund, Headline EU VIII, at €400M, up from €320M for its predecessor, with backing from KfW, the European Investment Fund, and Otto Group.