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PACE to advise APFC on gas line investment


April 15, 2006

The Alaska Permanent Fund Corporation Board of Trustees selected PACE Global Energy Services (PACE) on Thursday to serve as an advisor on potential Alaska gas pipeline investments.

"Infrastructure investments are a growing asset class for institutional funds because they can provide risk and return profiles similar to real estate, along with increased diversification" said Carl Brady, Board Chair. "A gas pipeline could represent an excellent infrastructure investment opportunity for the Permanent Fund."



PACE is based in Fairfax, Virginia, with 12 offices around the world. The firm has significant experience in working with large international energy infrastructure projects. PACE does not make investments in the energy industry, and does not have conflicts of interest in advising the APFC.

Under the terms of the contract, PACE will be expected to provide the following:

  • Education for the Board of Trustees on infrastructure investments and how other institutional funds are approaching them.
  • An evaluation of any gas line investment proposals presented to the APFC, including the merits of the proposal, and whether it would benefit the Permanent Fund's risk and return profile.
  • Assistance in implementing an investment in the gas line if the Board deems it beneficial and prudent for the Permanent Fund.

"We're not sure if a role for Permanent Fund investment may come out of the State's part in a gas line, but we want to be ready to review any proposal that we receive," said Michael Burns, Chief Executive Officer. "We believe it is important that we have an experienced energy consultant on board to assist in this evaluation, and PACE will be invaluable to us in this process."

PFM Asset Management and Global Energy Decisions, working as a joint venture, also presented to the Board before it made its final selection between the two candidates.

"We were very impressed by the expertise that both candidates showed us today," said Brady.

PACE will provide the first session of infrastructure investment education to the Trustees at the next regularly scheduled meeting on May 24 - 25 in Juneau.


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Ketchikan, Alaska