Arizona Public Safety Personnel Retirement System, Phoenix, committed up to $275 million to five private equity and real estate funds and hired three specialist consultants, pending contract negotiations, said James Hacking, executive director of the $7 billion system.
The funds committed $80 million to BlackRock Mortgage Investor Master Fund, a distressed debt fund; $75 million to Apollo Investment Fund VII, a private equity fund; $70 million to Apollo Value Enhancement Fund VII, a real estate fund; $25 million to Macquarie Infrastructure Partners II, a North American infrastructure fund; and $25 million to Macquarie European Infrastructure Fund III, a European infrastructure fund. No consultant was used.
Funding will come from reducing domestic equities; specifics have yet to be determined. The commitments are part of a larger effort to increase the systems real estate commitment to 6% and private equity to 5% from about 2% each. These commitments will enable us to be much more diversified in those two spaces, Mr. Hacking said.
Three specialist consultants will help staff perform due diligence in selecting new managers. The consultants and their specialties are ORG Portfolio Management, real estate; StepStone Group, domestic alternatives; and Capital Dynamics, international alternatives. Staff canvassed other pension systems for recommendations to find the consultants.