The Alaska Permanent Fund Corp., The Public Institution for Social Security of Kuwait and RPMI Railpen are making a combined initial $700 million commitment to launch a joint venture that will invest in new private equity and alternative investment managers.

Wafra Group, which is owned the Kuwait entity, is the investment manager for the joint venture.

Over the next five years the venture, called Capital Constellation, expects to invest a total of $1.5 billion from the original partners and possibly other asset owners.