Sovereign wealth fund (SWF) Alaska Permanent Fund Corporation (APFC) has poured over $1 billion into various global fund managers following an investment meeting in December.

The SWF gave $250 million to Oaktree Capital Management and Audax Management Company as part of the fund's strategy to invest in mezzanine level debt.

Mezzanine debt provides financing for private companies to fund actions such as acquisitions or corporate growth.

"Mezzanine debt ist a good addition to the Permanent Fund's portfolio because it provides returns in line with high- yield bonds but at lower risk levels," said Steve Frank, chair of the board at APFC.

The investment meeting also resulted in GMO being approved as a real return manager. GMO was given between $250 million and $500 million.

Dimensional Fund Advisors (DFA), a global small cap manager, was also approved by the board for two small cap mandates worth more than $200 million each.

The two-day meeting finished with the fund's absolute return investment policy being changed to clarify different types of investment that may be included in the fund and a complete review of the it's performance during the second quarter of this year.