Dallas/Fort Worth International Airport committed up to $10 million to RCP Advisors’ Small Business Investment Company Opportunities Fund, said Michael Phemister, vice president of treasury management.
The fund of funds will invest in SBIC certified funds and will seek co-investment opportunities in mezzanine loans.
The commitment will fall under the pension funds’ non-core fixed-income portfolio, which has a 15% target.
Separately, the board terminated Franklin Templeton Investments as a global fixed-income manager. The termination was related to the board’s decision to get out of global fixed income, where low interest rates have been challenging returns. The move is not a reflection of Franklin Templeton, which has been performing well against its index, Mr. Phemister said.
The board had about $22 million invested with Franklin Templeton. Funds will likely be reallocated within the non-core fixed-income portfolio.
The airport board oversees two pension funds with a combined $540 million in assets, plus two 401(a) plans and two 457 (b) plans with a combined $130 million in assets.