Austin (Texas) Police Retirement System invested $37.5 million in two private equity funds, a hedge fund and an opportunistic limited real estate partnership, said Sampson Jordan, pension administrator. The system committed $15 million to the CapitalSpring Franchise Equity Capital Partners II fund, which invests in small-unit-count franchises; $10 million to the Clinton Magnolia hedge fund; and $7.5 million to Timbervest Crossover Partners II, a private equity fund that specializes in wetland and wildlife land credits. The $510 million system also invested $5 million in an opportunistic limited real estate partnership with Vision Capital Partners, which will purchase about 1,100 acres of undeveloped land in suburban Atlanta.
Separately, the system returned 9.1% for the year ended Dec. 31. Real estate, timber and energy returned a combined 15.2% for the year, fixed income returned 10.3%, and equity returned 2.8%. Ron Partain of Consulting Services Group, the systems consultant, blamed low equity returns on the financial sector and subprime losses.