North Carolina commits $960 million to alternatives, real estate

North Carolina Retirement Systems, Raleigh, allocated $960 million to a combination of private equity, arbitrage and real estate strategies, according to recently released minutes from its Nov. 14 latest investment committee meeting.

In real estate, North Carolina allocated $400 million to Rockwood Capital for its NorthRock Fund II, $110 million to KTR Capital Partners for its KTR Industrial Fund III, $100 million to Rockpoint Group for its Rockpoint Real Estate Fund IV, and $60 million to Meadow Real Estate Fund II.

The pension fund's current real estate asset allocation is 7.66%, just shy of its 8% target allocation.

Recent alternatives commitments include $125 million to Silverback Asset Management for its Silverback Arbitrage Fund, $100 million to Blackstone Energy Partners, $40 million to Intervale Capital, a private equity firm specializing in oil field businesses, for its Intervale Capital II fund, and $25 million to Carousel Capital Partners IV, a private equity fund.

For the fiscal year ended June 30, assets were up 3.5% for the $77.1 billion retirement system.

In alternatives, the pension fund has a current allocation of 4.95%, with 4.6% for private equity and 0.35% for hedge funds, compared with a target of 6.5%. Another 4.08% is allocated for credit strategies, and 3.1% for inflation strategies.