Key Takeaways
- • North Dakota Department of Trust Lands committed $300 million to a fund-of-one private equity account, designed to help the institution reach its strategic allocation targets in the alternative asset class.
- • The fund-of-one structure targets a portfolio composition of 60–70% co-investments, 20–30% GP-led secondaries, and 5–10% LP-led secondaries, providing diversified exposure across private equity deal types.
- • This allocation reflects North Dakota's broader shift toward private markets and alternative investments, as the state's sovereign wealth fund seeks to optimize returns on public land trust revenues that finance public schools.
- • The $8 billion-plus North Dakota Department of Trust Lands, under Chief Investment Officer Frank Mihail, is strategically repositioning its portfolio to align with endowment-like investment characteristics and capitalize on emerging opportunities including the AI sector.
Summary
North Dakota's Department of Trust Lands announced a $300 million commitment to a fund-of-one private equity account on March 3, 2026, marking a significant step in the state's institutional push to expand alternative asset exposure. The fund-of-one structure—a dedicated single-manager vehicle—serves as a customized instrument to help the trust lands reach its target allocation within private equity while maintaining flexibility in deployment timing and manager selection.
The prescribed allocation for this account reflects a deliberately diversified approach to private equity exposure. The fund targets 60–70% of capital directed toward co-investments, allowing the state fund direct participation in underlying deals alongside general partners. An additional 20–30% is earmarked for GP-led secondary transactions, providing access to established portfolio companies at potentially attractive valuations. The remaining 5–10% is allocated to LP-led secondaries, enabling exposure to secondary fund vehicles that can offer liquidity or rebalancing opportunities within mature private equity portfolios.
North Dakota's trust lands fund, which manages approximately $8 billion in assets generated primarily from state oil revenues and public land holdings, has undergone strategic repositioning in recent years. Under Chief Investment Officer Frank Mihail, who brings a hedge fund background to the role, the institution has articulated ambitions to operate with endowment-like investment characteristics and has increased exposure to emerging opportunities including artificial intelligence and advanced technologies. This commitment to private equity aligns with that broader mandate to modernize the portfolio and enhance long-term return potential for the public schools that benefit from trust distributions.
The fund-of-one approach reflects a broader institutional trend among sovereign wealth funds and public pension systems seeking customized private market solutions. Rather than relying exclusively on traditional pooled funds, allocators increasingly utilize bespoke vehicles that offer greater transparency, alignment of interests with managers, and strategic control over capital deployment schedules. For North Dakota, this structure enables the state to maintain disciplined exposure targets while adapting to market conditions and manager quality assessments in real time.
The prescribed allocation for this account reflects a deliberately diversified approach to private equity exposure. The fund targets 60–70% of capital directed toward co-investments, allowing the state fund direct participation in underlying deals alongside general partners. An additional 20–30% is earmarked for GP-led secondary transactions, providing access to established portfolio companies at potentially attractive valuations. The remaining 5–10% is allocated to LP-led secondaries, enabling exposure to secondary fund vehicles that can offer liquidity or rebalancing opportunities within mature private equity portfolios.
North Dakota's trust lands fund, which manages approximately $8 billion in assets generated primarily from state oil revenues and public land holdings, has undergone strategic repositioning in recent years. Under Chief Investment Officer Frank Mihail, who brings a hedge fund background to the role, the institution has articulated ambitions to operate with endowment-like investment characteristics and has increased exposure to emerging opportunities including artificial intelligence and advanced technologies. This commitment to private equity aligns with that broader mandate to modernize the portfolio and enhance long-term return potential for the public schools that benefit from trust distributions.
The fund-of-one approach reflects a broader institutional trend among sovereign wealth funds and public pension systems seeking customized private market solutions. Rather than relying exclusively on traditional pooled funds, allocators increasingly utilize bespoke vehicles that offer greater transparency, alignment of interests with managers, and strategic control over capital deployment schedules. For North Dakota, this structure enables the state to maintain disciplined exposure targets while adapting to market conditions and manager quality assessments in real time.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.