Chicago Municipal Employees' Annuity & Benefit Fund hired Prudential Financial to run $55 million and Midwest Mezzanine to run $20 million in mezzanine debt strategies, confirmed Michael Walsh, chief investment officer.
The $5.1 billion pension fund issued an RFI in March. Other finalists were Crescent Capital Group and Smith Whiley & Co.
The hires are a result of a shift in the pension fund's private equity allocation that was adopted in March. Previously, the pension fund had a target allocation of 10% to traditional private equity investments; it now has a target of 5% to traditional private equity and 5% to mezzanine debt.
As of Dec. 31, the actual allocation to private equity was 4%.
Marquette Associates assisted.