Colorado Fire & Police puts $80 million in hedge fund, private equity funds

Colorado Fire & Police Pension Association, Greenwood Village, committed or invested a total of $80 million to three funds, said Scott Simon, chief investment officer, in an e-mail.

The $4.2 billion pension fund invested $50 million in Hutchin Hill Capital, a multistrategy hedge fund.

It is a first-time investment with Hutchin Hill Capital. The pension fund has a 12% target to absolute return.

The pension fund also committed $15 million each to private equity funds Endeavour Capital Fund VII and Dyal Capital Partners II.

Endeavour Capital Fund VII is a $700 million fund “focused on lower middle-market companies in the western U.S.,” Mr. Simon wrote. The pension fund previously committed $7.5 million and $10 million to predecessor funds Endeavour Capital Fund IV and Endeavour Capital Fund VI, respectively.

Dyal Capital Partners II is a “$2 billion fund focused on acquiring minority interests in general partners of established hedge (fund) firms,” Mr. Simon wrote.

This is the pension fund's first commitment to Dyal Capital Partners, a unit of Neuberger Berman.

The new private equity commitments will fall under the pension fund's illiquid alternatives allocation, which has an 18% target.

Separately, the pension fund's staff is investigating different cash management strategies, Mr. Simon wrote. He could not provide additional information as the process has just begun.