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Hartford HealthCare slates $177 million for alternatives

Hartford HealthCare slates $177 million for alternatives

Hartford HealthCare, Hartford, Conn., made a total of $177 million in investments in direct lending, real estate, venture capital and other alternatives, said David Holmgren, chief investment officer.

Among the moves:

  • SSG Capital Management was hired to manage $50 million in Asian secured senior lending.
  • Investments of $40 million each to MGG Investment Group to manage in global senior secured lending and to hedge fund Standard General to run in a special situations fund.
  • Stockbridge Capital was hired to manage $30 million in U.S. value-added real estate.
  • Balderton Capital was hired to manage $17 million in late-stage European venture capital.

The Asian direct lending investment is Hartford HealthCare's first dedicated non-U.S. allocation within HHC's private credit portfolio, Mr. Holmgren said.

Funding for the moves will come from rebalancing; no managers were terminated.

Mr. Holmgren said the strategy behind the investments is to maintain income generation in a low-yield environment. “We're spending more time in less-trafficked funds,” Mr. Holmgren said. “We want to be with the right classes and the right partners in those classes. Our strategy remains to be active and globally diversifying, but we are spending more time considering income-producing and non-economic dependent niche strategies.”

Hartford HealthCare has a total of $3 billion in pension, endowment and other assets. Its asset allocation is 55% in growth strategies, which include private and public equities; 35% in risk-reduction strategies, which include hedge funds and fixed income; and a 10% economically hedged allocation, which includes natural resources.

Hartford HealthCare returned 13.7% for the 12 months ended March 31. “Our asset allocation has been positive, but our strong performance is equally driven by being in the right partnerships,” Mr. Holmgren said.