Updated with correction Nov. 9, 2011
Baltimore City Employees' Retirement System committed $50 million to three private equity managers.
The $1.3 billion system committed $20 million to Adams Street Partners; $10 million to Summit Partners for a mezzanine debt fund; and $16 million to RCP Advisors for its private equity fund of funds and $4 million for RCPDirect Feeder Fund.
Roselyn H. Spencer, the system's executive director, said in a telephone interview that the board voted last year to double its private equity allocation to 10%. “We were simply filling that allocation” with the new commitments, she said.
Separately, Prisma Capital Partners, Corbin Capital Partners and Evanston Capital were named finalists in the system's search for a hedge fund manager to run $25 million. The portfolio's previous manager, Attalus Capital, was terminated this summer for “less-than-expected performance,” Ms. Spencer said. The board will select a manager at its monthly meeting Nov. 17. Calls to Attalus were not returned by deadline.
The system also terminated Western Asset Management from a $60 million core-plus fixed income portfolio, said Ms. Spencer, citing performance and allocation redirection. Ms. Spencer said board members have not decided what type of search they will want to replace it. In the meantime, the money was parked in a passive Barclays Capital Aggregate fund run by Mellon Capital.
Western Asset Management spokeswoman Mary Athridge said the firm does not comment on client matters.