Kentucky Retirement Systems commits $121 million to 2 private equity funds

Kentucky Retirement Systems, Frankfort, committed €50 million ($66 million) to Triton Fund IV, a northern European middle-market buyout fund managed by Triton Advisers, and up to $55 million to H.I.G. Capital Partners V, a buyout fund, confirmed T.J. Carlson, chief investment officer.

This is the fourth investment with H.I.G. for the $14 billion pension fund and first with Triton, Mr. Carlson said in a telephone interview.

Separately, the pension fund returned 12.9% for the year ended Dec. 31, underperforming its policy benchmark of 13.6%. Mr. Carlson said the main issue with the underperformance is that the $3 billion Kentucky Employees Retirement System is “so liquidity constrained” that it is selling off a lot of assets to cover benefit payments.

The pension fund returned an annualized 8.25% for the three years ended Dec. 31 and an annualized 7.1% for the 10-year period.