Real Assets
The retirement system approved private equity and real assets commitments at its meeting last week.
The pension fund will seek a fund-of-one platform to fill out a 3% target allocation to the asset class.
Many endowments, foundations and their allocators point to relatively small or medium-size private equity buyout and early-stage venture capital for returns that outpace the public markets, while private real estate, infrastructure, hedge funds and private debt, especially asset-based lending look like strong portfolio diversifiers in this year’s mercurial environment.
The retirement fund intends to allocate at least $200 million to open-ended, diversified core and core-plus infrastructure equity funds.
The retirement fund intends to allocate at least $200 million to open-ended, diversified core and core-plus infrastructure equity funds.
The plan added $560 million in recent commitments across private equity, infrastructure and real estate.
The real assets consultant will cover non-real estate asset classes such as infrastructure, energy transition and natural resources.
The plan hired two firms to implement emerging manager programs of up to $400 million each for real estate and real assets.
The retirement fund is also scheduled to review a core infrastructure manager for potential inclusion in the portfolio in February.
The retirement system also hired an international all-cap growth equity manager and four infrastructure managers this week.
