New York State Teachers’ Retirement System, Albany, committed $50 million each to Cortec Group Fund V and Artemis Real Estate Partners Fund I, according to John Cardillo, a spokesman for the $80.3 billion system.
The Cortec fund invests in lower- to middle-market leveraged buyouts, while the Artemis fund invests in distressed real estate, Mr. Cardillo wrote in an e-mailed response to questions. Both commitments are pending due diligence reviews.
Separately, the system’s board renewed one-year contracts with CMBS managers BlackRock to manage $447 million and Torchlight Investors to manage $382 million. BlackRock’s contract is effective April 3; Torchlight’s, March 30. The system has $1 billion in CMBS.
Also, Iridian Asset Management was retained to manage $647 million in active domestic midcap equities for one year, effective April 1. The system has $40.6 billion in domestic equity, Mr. Cardillo wrote.
The board also authorized Thomas Lee, executive director, to shift up to $2 billion between the system’s passive domestic and international equity portfolios “at his discretion as circumstances warrant,” according to the system’s website.
“No new hires or terminations are anticipated as a result of this action,” Mr. Cardillo wrote. “It is anticipated that money will simply be reallocated among existing managers.”
Mr. Cardillo wrote that this authorization allows “increased flexibility for maintaining the system’s targeted allocations to domestic and international equities.” The system has a total of $34.3 billion in passive domestic equities and $8.4 billion passive international equities, he wrote.
The board also authorized Mr. Lee “to invest in exchange traded futures as necessary to minimize certain asset allocation risk and to minimize implementation costs and improve efficiencies when rebalancing the domestic equity portfolio,” according to the system’s website, which added “exposure in such instruments not to exceed $2 billion at any one time.” This action isn’t expected to involve terminations or hires, Mr. Cardillo wrote. Mr. Cardillo added that the system hasn’t invested in any exchange-traded futures so far.
In addition, the board re-elected R. Michael Strauss as president of the board and Sheila J. Salenger as vice president of the board to one-year terms. Both have served in their respective roles since 2009.