Arizona Public Safety Personnel Retirement System, Phoenix, committed a total of up to $300 million to five managers pending due diligence and legal review, said James Hacking, administrator of the pension fund.
The $7.9 billion pension fund committed up to $80 million to Magnetar Capital's MTP Energy Fund with an additional up to $40 million for co-investments. This is the pension fund's first investment with Magnetar.
The investment is part of the pension fund's real assets allocation.
Separately, the pension fund committed up to $80 million to Bridgewater Real Asset Fund, managed by Bridgewater Associates. The commitment will be part of the pension fund's risk parity allocation. The retirement system has previously invested with Bridgewater.
Also, the pension fund made up to $50 million in private equity commitments:
- up to $30 million to Vista Equity Partners Fund V, a software- and technology-focused buyout fund. The pension fund previously committed up to $50 million to the fund's predecessor, Vista Equity Partners Fund IV in 2011.
- up to $20 million to Patria Brazilian Private Equity Fund V, a buyout fund managed by Patria Investimentos. The pension fund previously committed up to $20 million to the predecessor fund in 2011.
In real estate, the pension fund committed up to $30 million to Greenfield Acquisition Partners VII, with an additional up to $20 million for co-investments. The pension fund has previous commitments with Greenfield Partners.
Finally, the pension fund made several changes to its target asset allocations for fiscal year 2015, which starts July 1.
The target allocation to domestic equity was reduced to 16% from 17%, and fixed income was reduced to 7% from 8%.
The target allocations that were increased were credit opportunities to 13% from 12% and private equity to 11% from 10%.
The target allocations that remained the same were: 14% international equity, 11% real estate, 10% GTAA, 8% real assets, 4% absolute return, 4% risk parity and 2% short term investments.
The changes will not result in terminations, Mr. Hacking said.