Florida State Board of Administration, Tallahassee, announced new manager hires and fund commitments totaling $1.75 billion, said John Kuczwanski, communications manager, in an email.
The board, which oversees a total of $209.7 billion, including the $167 billion Florida Retirement System, hired BMO Global Asset Management and Los Angeles Capital Management & Equity Research to run $180 million and $176 million, respectively, in active domestic small-cap equities. BMO Global manages a value strategy, and Los Angeles Capital manages a growth strategy. Funding will come from general asset class liquidity, Mr. Kuczwanski said. The hires fall within the retirement system's global equity asset class. As of Nov. 30, the actual allocation was 58.2%; the target is 53%.
Investment consultant Mercer assisted.
Separately, the board committed $250 million each to Coastline Tranche II, a flexible strategy managed by BlackRock (BLK), and to Tintoretto Partners, an insurance fund managed by RenaissanceRe Fund Management; $200 million in DoubleLine Opportunistic Income Master Fund, an opportunistic credit fund managed by DoubleLine Capital; $100 million to Orion Mine Finance Fund II and $50 million to Orion Mine Finance Co-Fund II, natural resources funds managed by Orion Resource Partners; and $100 million to Vine Media Opportunities Fund IV, a private equity fund that invests in film and television intellectual property, managed by Vine Alternative Investments Group. The board also made a direct hedge fund investment of $50 million in MW Eureka U.S., a long/short equity fund managed by Marshall Wace. The commitments and investments were within the retirement system's strategic investments asset class. As of Nov. 30, the actual allocation was 8%; the target is 12%.
The board also committed $105 million to Charlesbank Equity Partners IX and $10 million to Charlesbank Equity Partners Overage Fund, buyout funds managed by Charlesbank Capital Partners; $75 million each to buyout fund Thoma Bravo Discover Fund II and Siris Partners IV, a buyout fund managed by Siris Capital Group; $65 million to EnCap Flatrock Midstream Fund IV, a natural resources fund; $60 million to Post Oak Energy Partners IV, a natural resources fund managed by PostOak Energy Capital; and $50 million to LightBay Investment Partners, a buyout and special situations fund managed by LightBay Capital. The commitments fall within the retirement system's private equity asset class. As of Nov. 30, the actual allocation was 6.5%; the target is 6%.
Cambridge Associates, FSBA's alternative investments consultant, assisted with the private equity and strategic investments transactions.