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Alaska used $50M from its reserve fund for a private equity investment, sparking debate over fiscal safety.
Alaska’s former Revenue Commissioner Adam Crum defended investing $50 million from the state’s rainy-day fund into a private equity fund managed by DigitalBridge, citing growth in digital infrastructure.
The move, approved in July 2024 just before Crum’s resignation, drew criticism from lawmakers and officials who questioned the suitability of illiquid, long-term investments for a fund meant to ensure fiscal stability.
Governor Mike Dunleavy ordered an independent review to assess compliance with state policies, as the investment followed procedures including approvals from the Department of Law and the governor’s office.
While state law allows some reserve funds to be invested for higher returns, the bulk of the reserve has been held in low-risk, liquid assets since 2020.
The DigitalBridge contract cannot be canceled, and the review is ongoing.
Alaska utilizó 50 millones de dólares de su fondo de reserva para una inversión de capital privado, lo que provocó un debate sobre la seguridad fiscal.