Houston Police Officers' Pension System committed up to $185 million total to seven alternatives funds over the last three months of 2013, according to recently obtained minutes of the board meetings.
The $3.8 billion pension fund committed up to $40 million to Lone Star Real Estate Fund III, a distressed commercial real estate debt and equity fund managed by Lone Star Funds.
The plan also committed up to $25 million each to Torchlight Debt Opportunity Fund IV, an opportunistic real estate debt fund managed by Torchlight Investors; Odyssey Investment Partners Fund V, a middle-market buyout fund; LS Power Equity Partners III, a private equity fund managed by LS Power Equity Advisors that invests in operating power plants; Atlas Capital Resources II, a turnaround private equity fund managed by Atlas Holdings; and Strategic Partners Fund VI, a secondary private equity fund of funds. Blackstone acquired Strategic Partners from Credit Suisse last year.
Also, the pension fund committed $20 million to Apollo Investment Fund VIII, a buyout fund managed by Apollo Global Management.
The pension fund had an actual 45.6% allocation to alternatives and 49.25% target as of Nov. 30.