Connecticut Retirement Plans & Trust Funds, Hartford, agreed to commit a total of up to $125 million to two private equity funds, confirmed Denise Nappier, the state treasurer and principal fiduciary for the $25.9 billion state pension system, in an e-mail.
The fund will commit up to $75 million to Yucaipa American Alliance Fund III, a $1.6 billion private equity fund being raised by Yucaipa Alliance Management. Yucaipa III will focus primarily on U.S. middle-market equity investments in control buyouts of logistics, distribution, grocery, retail and hospitality companies. Yucaipa III also will invest in public equity, non-control and debt-related opportunistic investments providing equity-type returns.
It also will commit up to $50 million to Altaris Health Partners III, a $425 million private equity fund being raised by Altaris Capital Partners. Altaris III will focus principally on private equity investments in health-care and health-care-related businesses, primarily in the U.S. and secondarily in Western Europe.
In addition, the investment council decided to hire four managers — BlackRock, Colchester Global Investors, New Century Advisors and Pacific Investment Management Co. — to manage global Treasury inflation-protected securities within the pension system's roughly $1 billion inflation-linked bond portfolio. Specific allocations have not been determined.
The hiring decisions are pending successful contract negotiations.
Ms. Nappier announced the commitments Wednesday at a meeting of the investment advisory council, which advises the treasurer on investment policies.