Alameda-Contra Costa Transit mulls private debt
By Arleen Jacobius | January 11, 2013 2:53 pm
Alameda-Contra Costa Transit District Retirement System, Oakland, Calif., at its Monday board meeting is scheduled to hear a presentation by executives from Orchard Global Asset Management for a possible private debt investment, said Hugo Wildmann, retirement system manager for the $480 million system.
NEPC, the fund's general investment consultant, is looking at managers and structures for a potential 5% allocation to private debt, likely in a hedge fund structure, Mr. Wildmann said. This is part of a long-term process that started two years ago to diversify the portfolio out of equities into other asset classes, which now include a 10% global asset allocation and a 5% real estate allocation.
Mr. Wildmann said he does not expect Orchard's presentation to result in an immediate selection.
The board is expected to decide within the next couple of months whether it is interested in investing in private debt, Mr. Wildmann said.