New York City Retirement Systems committed $600 million to Apollo Global Management to run an opportunistic fixed-income separate account, confirmed Matthew Sweeney, spokesman for New York City Comptroller John Liu.
Mr. Liu is the investment adviser, custodian and trustee of the five city pension funds, which have aggregate assets of $121.9 billion.
Mr. Sweeney in an e-mail said Apollo's opportunistic fixed-income investments include senior loans, high-yield bonds and distressed debt in both Europe and the U.S., among other strategies.
Assets will come from four of the city's five pension funds — the $43.9 billion Teachers' Retirement System; $41.7 billion Employees' Retirement System; $25.2 billion Police Pension Fund; and $8.1 billion Fire Department Pension Fund.
In November, the $107.4 billion Texas Teacher Retirement System, Austin, authorized its investment staff to set up a $3 billion fund of funds arrangement with Apollo.
Separately, the New York City system made $150 million commitment to credit hedge fund manager Caspian Capital. That commitment will come from the city Employees, Fire and Police funds.
Christine Williamson contributed to this story.