The $37 billion Alaska Permanent Fund Corp.’s board of trustees has approved a $400 million allocation to private equity gatekeeper Pathway Capital Management.

The mandate was made to create a “fund of one,” in which the Permanent Fund is the only contributor, which will place capital with small- and mid-market p.e. funds investing in companies with a total enterprise value of $1 billion or less.

Currently Alaska’s p.e. portfolio is concentrated on funds that invest in companies that are larger than the $1 billion threshold. Its hedge fund investments include Crestline Investors, Lazard Asset Management, Lehman Brothers, Mariner Investment Group and Pacific Alternative Asset Management Company.