Searches and Hires

Florida hires 2 to manage $2.8 billion in international equity, commits another $340 million

Florida State Board of Administration, Tallahassee, announced new manager hires and fund commitments totaling more than $3.1 billion during the first quarter, said John Kuczwanski, communications manager, in an email.

The board, which oversees a total of $204.9 billion, including the $161.4 billion Florida Retirement System, hired AllianceBernstein (AB) and Grantham, Mayo, Van Otterloo & Co. to manage $1.4 billion each in active international large-cap equities. The hires fall within the retirement system's global equity asset class. Funding came from general liquidity, Mr. Kuczwanski said. The board also terminated Harmonic Capital Partners from a $996 million currency strategy during the first quarter due to "significant personnel changes," Mr. Kuczwanski said. Assets were reallocated to general liquidity, he said.

As of Feb. 28, the actual allocation to global equity was 57.5%; the target is 53%.

Investment consultant Mercer assisted.

Separately, in private equity, the board committed $100 million to Carlyle Partners VII, a buyout fund managed by The Carlyle Group. The board has made multiple commitments to Carlyle, most recently committing $100 million each to Carlyle Property Investors and Carlyle Realty Partners VIII in 2017.

Also in private equity, the board committed €75 million ($91 million) to buyout fund Equistone Partners Europe Fund VI. The board had committed $70 million to Equistone Partners Europe Fund V in 2015.

As of Feb. 28, the actual allocation to private equity was 6.5%; the target is 6%.

In the board's strategic investment asset class, the board committed $50 million to Rubik Holdings, an insurance risk fund managed by Nephila Capital. It is the board's first commitment to the manager.

As of Feb. 28, the actual allocation to strategic investments was 7.9%; the target is 12%.

Cambridge Associates, FSBA's alternative investments consultant, assisted with the private equity and strategic investments transactions.

In real estate, the board committed $100 million to AEW Value Investors Asia III, an opportunistic real estate fund focused on retail and office properties in high-growth Asian cities managed by AEW Capital Management.

As of Feb. 28, the actual allocation to real estate was 8.7%; the target is 10%.

Real estate consultant Townsend Group assisted.