Louisiana Sheriffs' Pension & Relief Fund, Baton Rouge, hired BlackRock and Grosvenor Capital Management to run $25 million each in opportunistic credit strategies, said Osey “Skip” McGee Jr., executive director.
It is the first opportunistic credit investments for the $2.5 billion pension fund, which conducted an invitation-only search earlier this year.
The search was originally for a third hedge fund-of-funds manager to join Blackstone Group and Corbin Capital Partners, which currently run $48 million and $54 million, respectively, but the staff and investment consultant Russell Investments decided there was enough hedge fund exposure between the two managers.
The six managers previously invited for the search also ran opportunistic credit strategies, so Mr. McGee said a decision was made to choose a manager from that list.
EnTrust Capital was also a finalist.
Funding will come from the pension fund's core-plus fixed-income managers; no managers will be terminated. Specific details have yet to be determined. The pension fund's core-plus fixed-income managers are Dodge & Cox, Goldman Sachs Asset Management and Pacific Investment Management Co.