Texas Tech University System endowment, Lubbock, hired Waterfall Asset Management to run $30 million in an asset-backed securities and loans-focused strategy, said Timothy Barrett, chief investment officer.
Funding is coming from cash flow and a restructuring of the credit portfolio. No managers have been terminated yet, but could be eventually, wrote Mr. Barrett in an e-mail. The endowment's target allocation to liquid credit is 15%.
The $1 billion endowment also committed $18 million to Fortress Investment Group's Worldwide Transportation and Infrastructure Investors fund.
The Fortress allocation is part of the endowment's private real assets portfolio. The endowment's target allocation to private real assets is 10%.
Separately, the endowment invested a total of $50 million in two hedge funds: $20 million in EOS Focused Equity Fund, a long/short equity hedge fund managed by Eos Partners and $30 million in Beach Point Select Fund, an opportunistic credit fund managed by Beach Point Capital Management, wrote Mr. Barrett.
The Eos investment is part of the endowment's global equity allocation. As of April 30, the endowment’s actual allocation to global equity was 38.5% and its target was 35%.
The Beach Point allocation fits into the endowment's liquid credit allocation.
