Arizona Public Safety Personnel Retirement System, Phoenix, committed up to $40 million to RK Capital Management for its Red Kite Explorer fund and up to $30 million to Cortec Group Fund V, confirmed James Hacking, administrator of the $6.7 billion system.
The Red Kite fund makes loans to mining companies in exchange for interest in the mining operations, Mr. Hacking said in telephone interview. He said the investment is part of the system’s real assets allocation and will be funded from the system’s equity allocation. The system’s real assets allocation held $354 million at the end of January and makes up about 6% of system investments, with a target range of 2% to 10%, Mr. Hacking said.
The Cortec fund is a private equity investment that specializes in buyouts, Mr. Hacking said.
Mr. Hacking said the system had $548 million in private equity as of January, which makes up about 8% of the overall system. The allocation target to private equity is 4% to 12%, Mr. Hacking said. He said the commitment will be funded from cash when available and the system’s equity allocation.