Kentucky Retirement commits to 3 alternatives funds
By Kevin Olsen | August 16, 2012 3:35 pm
Kentucky Retirement Systems, Frankfort, committed a total of $162.5 million to three alternatives funds, confirmed T.J. Carlson, chief investment officer.
The $13.7 billion retirement system committed $75 million to Mesa West Core Lending Fund, a direct lending real estate loan strategy managed by Mesa West Capital. The retirement system previously committed $40 million to Mesa West Real Estate Income Fund II.
It also made a $52.5 million commitment to Walton Street Real Estate Fund VII, a value-added opportunistic strategy managed by Walton Street Capital. KRS previously committed $40 million to the predecessor Walton Street fund.
In private equity, the retirement system committed $35 million to Arcano Secondary Fund II, managed by Arcano Capital. Funding will come from the retirement system's $3 billion insurance portfolios because the pension funds are at or overweight in private equity, Mr. Carlson said in a telephone interview.
Separately, KRS plans to issue an RFP for a custodial bank by the end of the month. Incumbent Northern Trust is invited to rebid. The RFP will be posted on the retirement system's website.