The Alaska Permanent Fund Corp., the Public Institution for Social Security of Kuwait, RPMI Railpen and Wafra, a manager of private equity and alternative investments, have established a new entity called Capital Constellation.
Capital Constellation will provide catalytic investment capital to next-generation private equity and alternatives managers and will be advised by Wafra. Combined, the founders will initially commit $700 million to the venture, and Capital Constellation is expected to deploy more than $1.5 billion in the next five years.
Capital Constellation will bring together the expertise and capital base of three institutional investors, spanning Europe, North America and the Middle East. Capital Constellation leverages Wafra’s existing capabilities to form partnerships with promising investment teams who demonstrate the investment and operational expertise required to generate strong investment performance and business growth.
Capital Constellation’s mission is to assist talented alternative investment managers in breaking through the challenges of initial fundraising, specifically by providing strategic and operational support and an aligned, substantial and long-term capital base. In return, Constellation’s unique structure is designed to generate consistent, long-term value for its members’ pensioners and citizens.
In conjunction with the formation of the joint venture, Capital Constellation made its first strategic partnership with Astra Capital Management, a private equity manager specializing in growth buyouts in the communications and technology services industries. Astra’s founders have more than 100 years of industry, investment and operating experience in the communications and technology industries, and have previously worked at leading institutions with long histories of successful investing in the sector. Capital Constellation has committed $100 million to Astra and will work closely with their leadership to support Astra’s mission and growth.