Infrastructure
Institutional commitments to private infrastructure funds increased in the second quarter given attractive characteristics—like providing an inflation hedge or cash yield—and product offerings that have gained steam in recent years, a trend that will likely continue into the second half of 2023 and beyond.
The plan committed to two private equity strategies and a maiden infrastructure investment.
The university has increased its targets to private equity and real assets at the expense of global equity and marketable alternatives to improve its portfolio’s return and risk profile.
The retirement system is seeking global large-cap infrastructure funds.
Plan bolstered its private equity and private infrastructure allocations with commitments to two existing manager relationships.
The search will have a focus on the large-cap market segment.
The pension plan is looking for global infrastructure managers to handle approximately $20 million after approving the search in the first quarter.
The plan will issue an RFP for ACWI ex-U.S. managers in the coming weeks.
The plan concluded a search both launched in 2021 and delayed since last year.
The plan will hire one additional firm in its multi-credit asset class search.