Kentucky Teachers makes first commitment to Public Pension Capital

Kentucky Teachers' Retirement System, Frankfort, committed $50 million to a middle-market private equity fund managed by Public Pension Capital, confirmed Gary Harbin, executive secretary of the $16 billion pension fund.

It is the pension plan's first commitment to the management firm, which was started last year by former executives of KKR.

Separately, Mr. Harbin said the plan returned 13.4% for the year ended Dec. 31, surpassing its policy benchmark by 60 basis points.

International equity was the top performer at 17.3%. It was followed by domestic equity, 16.6%; high-yield bonds, 15.6%; real estate, 12.2%; alternatives, 8.8%; fixed income, 6.9%; and timber, 3.1%. Alternatives is primarily made up of private equity, Mr. Harbin said in a telephone interview.