North Carolina Retirement Systems, Raleigh, hired two managers to run a total of $4.5 billion in new public equity initiatives and committed $1.1 billion to alternative funds, according to an update provided by the investment management division to the investment advisory committee on Wednesday.
The commitments represent all new activity for the $90 billion pension fund since the committee's March meeting.
Investment committee members were briefed on two new initiatives in public equity, a $3 billion Piedmont Russell 200 passive fund to be managed by Piedmont Investment Advisors, and a new managed account, the $1.5 billion Old North State Hedged Equity 1, to be managed by BlackRock. The hedged equity account will be funded from other public equity managers and other asset class portfolios.
In private equity, North Carolina committed $247.5 million to Grosvenor NC Innovation Fund II, an in-state fund managed by Grosvenor Capital Management; $67.5 million to venture capital fund New Enterprises Associates 15; and $65 million to NEA 15 Opportunity Fund. Chief Investment Officer Kevin SigRist said at the meeting that several of the commitments will be co-investments.
In non-core real estate, opportunistic fund Blackstone Real Estate Partners VIII, managed by Blackstone Group, received a $200 million commitment.
In opportunistic fixed income, Pacific Alternative Asset Management Co.’s Newport Burgundy hedge fund of funds got a $200 million commitment, and CarVal Investors received $100 million for CVI Credit Value Fund III.
Inflation strategies commitments included $150 million to EnCap Investments for EnCap Energy Capital Fund X and $100 million to Blackstone for Strategic Partners NC Real Asset Opportunities.