Real Assets
The plan approved private equity and tangible assets commitments at its meeting today.
The plan is searching for infrastructure managers after creating a maiden target to the asset class last year.
The retirement system will interview three firms for a $20 million mandate.
The plan is conducting the search to comply with state procurement regulations.
The plan will consider issuing two consultant RFPs due to upcoming contract expirations and recently added a private equity commitment.
The commitments were approved by the plan’s private markets committee at a meeting yesterday and require full board approval later this month.
The retirement system added a $75 million commitment to an existing manager relationship last month.
The pension plan recently committed approximately $2.2 billion total to eight funds and terminated an existing credit strategy.
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 will invest a total of $35 million with two farmland funds.
