Arizona State Retirement System, Phoenix, made two new commitments totaling $800 million, investment committee meeting materials said.
The $32 billion pension fund committed $500 million to HPS–AP Mezzanine Partners III, a private debt fund of one managed by Highbridge Principal Strategies.
The pension fund's partnership with Highbridge in the fund of one “invests primarily in mezzanine debt to find highly leveraged transactions for larger capitalization companies,” said the materials for Monday's meeting.
The investment period of the pension fund's previous fund-of-one partnership with Highbridge, AP Mezzanine Partners II, will expire June 30. That commitment was originally $229 million.
Separately, the pension fund committed $300 million to Ares Saguaro Income Opportunities Fund, an opportunistic debt fund managed by Ares Management that will invest in commercial mortgage real estate investment trusts and high-yielding business development companies.
David Cannella, pension fund spokesman, could not be immediately reached to provide further information.