Houston Firefighters' Relief and Retirement Fund allocated up to $110 million total to two managers, said investment committee meeting minutes provided by the $4.1 billion pension fund.
The pension fund hired Loomis, Sayles & Co. to manage up to an initial $60 million in emerging markets debt and committed up to $50 million to private equity fund LightBay Investment Partners, managed by LightBay Capital, pending final negotiations.
"LightBay will target control-oriented investments in North American middle-market health-care services, consumer/retail and business services companies, and utilize various transaction types, ranging from traditional buyouts to complex balance sheet reorganizations," said Ajit Singh, chief investment officer, in an email.
The pension fund has a 20% private equity target.
Funding for Loomis Sayles will come from the pension fund's public markets portfolio with no terminations, Mr. Singh said.
Separately, the pension fund is transferring $70 million of its approximately $150 million investment in Bridgewater Associates' Pure Alpha Fund II to the Bridgewater All Weather risk-parity strategy. The pension fund currently has $78 million invested in the All Weather strategy.