Seattle City Employees Retirement System plans to invest about $40 million in alternative investments and $35 million in real estate. There are no specific mandates or timetables; all searches will be conducted internally.
In alternatives, the $1.2 billion pension fund is collecting information about structured-equity or structured-debt strategies involved in middle-market, non-control buy-ins. The fund also seeks more information about direct or fund-of-funds investments in hedge funds; the plan recently allocated $10 million to a convertible arbitrage strategy run by Advent Capital Management, while Quellos manages about $55 million in a fund-of-funds vehicle for Seattle City. Also, fund officials are interested in collecting information about timber.
In real estate, the fund might shift up to $35 million if officials can find a "stellar real estate investment, said Mel Robertson, assistant executive director. He said the fund is seeking investments that provide relative liquidity, current income or both. Assets would be shifted from existing real estate managers, which include J.P. Morgan Fleming, RREEF and Kennedy.