San Antonio Fire & Police Pension Fund committed $10 million each to private equity energy funds managed by Apollo Global Management and Kayne Anderson Capital Advisors, according to recently released minutes of the pension fund's June 26 board meeting.
The Apollo fund is a natural resource fund consisting of upstream energy and minerals, while Kayne Anderson specializes in pure-play domestic upstream investments, according to the minutes.
Energy Trust Partners was also a finalist. Townsend Group, the pension fund's real estate consultant, assisted with the shortlist search.
Separately, the board of the $2.1 billion pension fund approved starting searches for non-core real estate and risk-parity managers. Townsend originally recommended committing $20 million total to opportunistic funds and $10 million to a value-added fund. However, the sizes could be decreased after the board approved a new asset allocation that includes lowering real estate to 9% from 12%, and creating a 5% risk-parity allocation. Total equity was also decreased to 57% from 59%.
No further information on the searches was available. Matthew O'Reilly, chief investment officer, did not return a telephone call by press time.