By: Mary Steurer
BISMARCK, N.D. (North Dakota Monitor) – North Dakota plans to invest up to $150 million of Legacy Fund money in-state into land, infrastructure, agriculture and natural resources as part of a new agreement with investment firm GCM Grosvenor.
The Legacy Fund is a trust fund for the state made from oil tax revenue. The fund, which as of March was valued at nearly $12 billion, is meant to create a source of reliable income for North Dakota even after the state’s energy industry tapers off.
The Legislature made a commitment during the 2021 session to invest more Legacy Fund dollars in-state, with the goal of making money for North Dakota while also stimulating its economy.
The state has set a goal of investing $600 million into North Dakota equity. The partnership with GCM Grosvenor to invest $150 million is part of that. The money is expected to go largely to private infrastructure, including for the energy and technology industries, according to the state Retirement and Investment Office, which administers the Legacy Fund.
“All North Dakotans will benefit through increased opportunity, a broader tax base, and a stronger foundation for future growth,” Rep. Jonathan Warrey, who chairs the Legacy and Budget Stabilization Fund Advisory Board, said in an announcement this month.
A 2024 poll conducted by the North Dakota News Cooperative showed support for in-state investment of Legacy Fund dollars, with 68% of voters surveyed saying they want Legacy Fund investments to be made “within the state of North Dakota.”
The state anticipates it taking about three years for GCM Grosvenor to invest the money.
GCM Grosvenor is an investment firm based in Chicago. The State Investment Board already works with the firm, as it manages some other Legacy Fund investments.
“Because the investment strategy is project-focused rather than company-focused, there is no requirement for GCM Grosvenor to establish a North Dakota office,” Retirement and Investment Office Executive Director Jodi Smith said in an email to the North Dakota Monitor.
The state has already committed $250 million of the $600 million for a very different purpose: private capital investments. That money — which has gone to North Dakota companies in sectors including health care, construction, energy and more — has been managed by firm 50 South Capital since 2021. According to the Retirement and Investment Office, 50 South has committed $111.5 million of this money so far.
The state expects it to take until about 2030 for the state to invest the full $600 million.
North Dakota also puts Legacy Fund money into public infrastructure through loans issued by the Bank of North Dakota. These fixed-income investments commonly go to road improvements, according to the Retirement and Investment Office.
The in-state investment program is managed by the Retirement and Investment Office and is overseen by the State Investment Board, which Gov. Kelly Armstrong chairs.
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