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Chicago police fund narrows search for additional income-generating managers

The $2.4 billion Chicago Policemen’s Annuity & Benefit Fund interviewed six money managers and is considering hires within the fund’s new income-generating portfolio.

BluePrint Capital Advisors and Silver Creek Advisory Partners are being evaluated for multimanager income-generating strategies.

Four real estate debt managers — Brookfield Asset Management, Oak Street Real Estate Capital, Oaktree Capital Management (OAK) and Sound Mark Partners — are also being considered for a separate allocation.

Funding for the multimanager strategies will be from the fund’s fixed-income portfolio and from the real estate portfolio for the debt managers, said Aoifinn Devitt, the fund’s chief investment officer, in an email. The interviews were conducted during a Feb. 22 investment committee meeting.

The pension fund issued an RFP in October for esoteric income-generating solutions.

All six firms have been invited to attend the March 22 board meeting when hiring decisions are likely. The number of managers and the size of allocations have not been determined, Ms. Devitt said.

Three firms were hired at previous meetings as a result of the search for income-generating strategies: Ullico Investment Advisors, $50 million to infrastructure; Crestline Investors, $20 million to private credit; and Dorchester Capital Advisors, $25 million to fund of hedge fund secondary interests.

Separately, the board approved the following changes to the fund’s target asset allocation: an increase to 8% from 4% for private credit; a 1 percentage point increase to 15% for international equity; and global asset allocation dropped to 5% from 10%.

Ms. Devitt said manager hires and terminations are not expected as a result of the asset allocation changes.