BISMARCK, ND – A North Dakota Retirement and Investment Office (RIO) report to the Legacy and Budget Stabilization Fund Advisory Board on Tuesday, Nov. 12, highlighted the progress of the Legacy Fund’s in-state investment program. At the close of the fiscal year, more than $450 million was committed to 40 North Dakota businesses and communities. To tap additional in-state opportunities, the State Investment Board (SIB) will add another investment manager to the program’s roster next year.
"Through strategic partnerships and diligent investment practices we are strengthening North Dakota’s commitment to supporting local businesses and communities,” said Sen. Jerry Klein, the Legacy Fund advisory board chair.
Among the fixed-income investments reported, more than $311 million was committed through Bank of North Dakota’s Match Loan Program funding 9 loans used to attract and retain companies with investment-grade ratings by offering financing at below-prime interest rates. An additional $50 million was invested through the bank’s Infrastructure Revolving Loan Fund supporting 11 loans to political subdivisions by providing affordable financing for infrastructure projects, most frequently road improvements.
Through the North Dakota Growth Fund, the Legacy Fund supports the development of the state’s entrepreneurial ecosystem by making private equity and venture capital investments with a strong risk-adjusted return potential. Twenty North Dakota businesses are reported to have received $89 million in funding commitments.
The SIB plans to select an additional investment manager for the in-state investment program in January 2025. This new manager will focus on investments in real assets (e.g., real estate, natural resources and agriculture), complementing the work of the program’s existing managers.
“The in-state investment program is carefully managed to ensure that every investment benefits North Dakota,” said RIO Executive Director Jan Murtha. The Legacy Fund’s asset allocation has targeted $1.3 billion to in-state investments.
The $11 billion Legacy Fund aims to provide long-term financial security for the state by investing 30% of its oil and gas tax revenues so that future generations of North Dakotans can benefit from the state’s natural resources. The Legacy Fund advisory board, which consists of six state legislators and four citizen members, is responsible for establishing the fund’s asset allocation and investment policies. The SIB, through RIO, administers the program.