North Carolina Retirement Systems, Raleigh, has committed $1.97 billion to 10 alternative investment funds since mid-December, according to documents released at the $86.03 billion pension fund's investment advisory committee meeting Wednesday.
In private equity, the pension fund committed $220 million to Apollo Investment Fund VIII, a private equity buyout fund managed by Apollo Global Management, and $150 million to TCV VIII, a technology-focused growth equity fund managed by Technology Crossover Ventures.
In real estate, the pension fund committed $487.5 million to Blackstone Group's Edens Investment Partners fund, and £50 million ($83.4 million) to LaSalle Investment Management's LaSalle Real Estate Debt Strategies II.
In credit strategies, North Carolina committed $200 million to Providence Debt Fund III, a middle-market debt fund managed by Providence Equity Partners, $150 million to Benefit Street Partners Capital Opportunity Fund, and $130 million to Claren Road Credit Opportunities Partners managed by Claren Road Asset Management.
New commitments for the inflation portfolio were $300 million to IFM Global Infrastructure Fund managed by Industry Funds Management, $150 million to Jade Real Assets Fund managed by Highbridge Principal Strategies, and $100 million to Energy Capital Partners III, which invests in the North American energy market.
Separately, the investment advisory committee reviewed a new asset-liability study and considered new strategic asset allocations. The changes will be presented this month to state Treasurer Janet Cowell, the sole trustee of the pension fund, for approval.
The committee recommended reducing the pension fund's fixed-income target to 28% from 36%; the actual allocation as of Feb. 12 was 31.5%. The fixed-income portfolio's performance, which was -3.49% in 2013, led Ms. Cowell to get legislative approval in 2013 to move into less-traditional assets.
Other changes considered by the committee include increasing the opportunistic fixed-income target to 7% from 4.5%, expanding inflation strategies to 6% from 4.5%, and hiking core real estate to 5% from 3.7%. Actual allocations as of Feb. 12 were 4.9% for opportunistic fixed income, 4% for inflation strategies and 3% for core real estate.
Global public equity would increase to 42% from 40.5%. The actual allocation as of Feb. 12 was 46.9%.
If approved, the changes would take effect in March, spokesman Schorr Johnson said.