The Alaska Permanent Fund plans to put half of its new investments into private equity. That's a hefty $1 billion for private equity underwriters (PEU).
One of the newest APF Trustees is Gabrielle Rubenstein, daughter of Carlyle Group co-founder David Rubenstein and Alice Rogoff, an advisory board member for Pt Capital. Gabrielle is co-founder and managing partner for MannaTree and her resume shows she helped found Pt Capital LLC.
The fund's investment staff has concerns about private equity investments as the asset class appears overvalued. Sudden changes in cost structure have bankrupted many a PEU affiliate. It remains to be seen how rapidly rising interest rates will work through the PEU python. Will it be the writhing alligator that obliterates its devourer?
How might the younger Rubenstein's board service help her parents' or her PEU holdings? It's worth watching.
History buffs may appreciate the irony of seed money for The Carlyle Group arose from selling Alaskan Native tax losses.
Update 6-9-24: As predicted APF board Vice Chair Elle Rubenstein set up meetings between her PEUs and corporation staff. This is fully expected in our PEU world. Conflicts be damned.
Update 6-23-24: The Alaska Permanent Fund board hired a law firm to look into the leak of Elle Rubenstein's e-mails to a political reporter and examine their disconcerting revelations.
