Indiana Public Retirement System, Indianapolis, committed a total of $200 million to private equity and real estate investments and terminated four managers running a combined $453 million in domestic and international equity, according to a report to trustees of the $25.3 billion pension system.
The system committed $100 million to Walton Street Real Estate VII, a closed-end opportunistic fund; $75 million to Ares Corporate Opportunities IV, an opportunistic private equity fund from Ares Management that invests in middle-market companies; and an additional $25 million to Green Equity VI, taking the system’s total commitment with manager Leonard Green & Partners to $100 million.
The plan previously invested in Walton Street Real Estate VI and Ares Corporate Opportunities III.
Private equity consultant Strategic Investment Solutions and real estate consultant ORG Portfolio Management assisted.
Separately, four public equity managers were terminated to fund investments in commodities and risk parity. The managers were: Grantham Mayo van Otterloo, $267 million in international equity; Manning & Napier Advisors, $104 million in international equity; EARNEST Partners, $54 million in domestic large-cap value; and Lord Abbett, $28 million in domestic micro-cap value.
Also, Schroder Investment Management’s emerging markets equity portfolio was removed from the watch list as its three-year return is now above the MSCI Emerging Markets Net Dividend index benchmark, according to the report. Schroders was hired four years ago to manage $150 million in active emerging markets core equity.