Kentucky Retirement hires 4 to run $1 billion in international equity

Pension fund also taps 4 for alternatives and names consultant

Kentucky Retirement Systems, Frankfort, hired four active international equity managers to run $1 billion total, invested or committed $185 million total with four alternatives funds and named a new private equity consultant, said David Peden, interim chief investment officer.

For the international equity, the $15.5 billion pension fund hired Lazard Asset Management to run $400 million, and Franklin Templeton (BEN) Investments (BEN), American Century Investments and LSV Asset Management to run $200 million each.

Funding comes from reducing a $965 million Pyramis Global Advisors international growth equity portfolio to $400 million and a $961 million Boston Co. Asset Management international value equity portfolio to $200 million.

The pension fund also committed $125 million to a middle-market direct lending fund of one managed by Cerberus Capital Management. It will be managed similarly to the Cerberus Levered Loan Opportunities Fund II, which closed in May.

KRS also made direct investments totaling $60 million in three hedge funds as it continues to build up its direct hedge fund portfolio that was initiated in August. Mr. Peden did not have a breakdown for how much was invested with each fund. The three managers hired were Luxor Capital Group, for event-driven/special situations; Coatue Management, for long/short equity; and Pine River Capital Management, for multistrategy. Funding comes from the hedge fund-of-funds portfolio.

The pension fund also hired Pension Consulting Alliance as its new private equity consultant, replacing Altius Associates. Mr. Peden declined to comment on why the switch was made.