Tallahassee (Fla.) Pension Plan hired BlackRock to run $25 million in a private equity fund of funds, confirmed Kent Olson, the city’s deputy treasurer-clerk.
The $1.3 billion pension fund also hired Lexington Partners and Pomona Capital to run $15 million each in secondary private equity funds of funds.
The hirings are the result of the creation in December of a new 5% target allocation to private equity following an asset allocation study.
The pension fund also committed $20 million each to real estate funds managed by Northwood Investors and Westport Capital Partners. Mr. Olson did not have the fund names available.
Those commitments are the result of the increase of the pension fund’s target allocation to real estate, to 15% from 10%.
The pension fund also created a new 5% target timber allocation and expects hirings later this year. The domestic equity target was reduced to 40% from 48% and the international equity target was reduced to 20% from 27%. Targets to international equity and emerging markets equity will remain unchanged at 10% and 5%, respectively.
Investment consultant Segal Rogerscasey assisted.