Staff at the Alaska Permanent Fund Corporation (APFC) have raised concerns over the inclusion of a 12% private debt allocation in its private equity benchmark, as well as the total exclusion of energy investments. The fund could subject its private equity benchmark to greater scrutiny after staff highlighted potential issues with its treatment of private credit and energy investments.

At a meeting of APFC's governance committee on Monday, staff recommended establishing a review committee to annually evaluate and affirm its performance benchmarks. The move reflects growing attention to benchmark composition amid evolving private market allocations and the need for accurate performance measurement.

The proposed review would assess whether current benchmarks appropriately capture the fund's investment strategy and risk profile, particularly regarding private credit exposure and energy sector omissions. APFC staff emphasized the need for regular affirmation to ensure alignment with long-term objectives and changing market conditions.

This development follows similar benchmark reviews at other large public pension funds seeking to refine private equity performance measurement. The outcome could influence how other institutional investors structure their private market benchmarks.