Kentucky Retirement Systems, Frankfort, committed a total of $325 million to five alternative managers, said David Peden, chief investment officer.
The $16 billion pension fund approved a total of $160 million in commitments for its private equity portfolio. It committed $100 million to DB Secondary Opportunities Fund III, managed by Deutsche Asset & Wealth Management, and $60 million to Crestview Partners III, a middle-market buyout fund. The pension fund previously committed to the predecessor Crestview fund. It is the first commitment to a DeAWM fund.
Private equity consultant Pension Consulting Alliance assisted. The pension fund has a 10% target to private equity.
On the real-return side, the pension fund committed a total of $165 million to the following managers:
- $65 million to Taurus Mining Finance Fund, a natural resources fund that invests in the debt of global emerging public and private mining and metals companies and is managed by Taurus Funds Management.
- $50 million to BTG Pactual Brazil Timberland Fund I; and
- $50 million to Oberland Capital Healthcare, a fund that invests in the health-care sector and is managed by Oberland Capital Management.
Real-return consultant Albourne Partners assisted. The pension fund has a 10% target to real return.
Separately, RVK, the pension fund's general investment consultant, will conduct an asset/liability study. Every five years, the pension fund selects a consultant to conduct an asset/liability study, Mr. Peden said. Results from RVK's study are expected in February.
Also, the board removed the interim tag from Mr. Peden's title at its Thursday board meeting. Mr. Peden was named interim CIO in November. A search is underway to fill Mr. Peden's previous role as director of fixed income, he said.