The State Board of Investment is made up of Gov. Tim Walz, state Auditor Julie Blaha, Secretary of State Steve Simon, and Attorney General Keith Ellison. (Jennifer Brooks)
The board last invested with Wayzata Investment Partners in 2012 when its membership was different, according to Schurtz. The firm notified investors in 2017 that it would not raise capital for future funds, she said.
The board of investment first dabbled in private equity in the 1980s and has long-term relationships with fund managers, Schurtz said.
“We’re in this space because we realize that we’re investing, for the most part, in American businesses, where these are great businesses, where a company can come in and give them financial, operational or leadership improvements or investments, and then we can realize tremendous value when they come out the other side,” she said.
In a presentation to lawmakers, Schurtz said in a downturn, pension funds with less money allocated to private equity would probably fare better.
“We think even if we have to endure volatility,” she said, ”it is in the long-term best interest of our members to do so.”