Searches and Hires

Colorado Fire & Police pledges $40 million to buyout fund, redeems managed futures strategy

Colorado Fire & Police Pension Association, Greenwood Village, committed $40 million to lower-middle-market buyout fund Capital Partners Private Equity Income Fund III, said Scott Simon, chief investment officer, in an email.

The pension fund previously committed $30 million to predecessor fund Capital Partners Private Equity Income Fund II.

Additionally, investment staff approved a $5 million direct investment in Alpha Petroleum Holdco, "an offshore oil and gas redevelopment asset located in the North Sea," Mr. Simon said.

Separately, the $4.1 billion pension fund will redeem its full $28.5 million investment in Systematica Investments' BlueTrend managed futures fund. The redemption was primarily because of portfolio construction considerations, said Austin Cooley, director of liquid strategies at Colorado Fire & Police. "Specifically, we are focusing our managed futures portfolio on strategies which are almost purely trend/momentum focused," Mr. Cooley said in an email.

A spokesman for Systematica said the firm cannot comment on individual client actions but Systematica remains "in active dialogue" with the pension fund around its investment offerings.

The pension will also make partial redemptions of $8 million and $4 million, respectively, from long/short equity hedge fund managers AKO Capital and Southpoint Capital Advisors, bringing their new allocation sizes to approximately $50 million each.

"Both managers have experienced strong relative performance for the year and are currently the largest positions in the long/short equity portfolio," Mr. Simon said, explaining the reason for the partial redemptions.

Redeemed funds from Systematica, AKO and Southpoint will be transferred to a new manager. Mr. Simon declined to provide additional information at this time.