Kentucky Retirement Systems, Frankfort, committed $150 million total to two alternatives managers, said David Peden, chief investment officer.
On behalf of its pension and insurance funds, the KRS board committed $100 million total to Kayne Anderson Energy Fund VII, a private equity fund managed by Kayne Anderson Capital Advisors, and $50 million to Mesa West Real Estate Income Fund IV, a value-added mid-market real estate fund managed by Mesa West Capital.
KRS has previously invested with Mesa West. Kayne Anderson is a new relationship.
Separately, as part of its desire to reduce costs and simplify the investment portfolio, the retirement system's investment committee is re-examining its 10% hedge fund allocation.
Whether the hedge fund allocation would be reduced or eliminated is not yet clear, Mr. Peden said. KRS' asset allocation as a whole will be examined over the next couple of months by staff and the new investment committee, which includes five new members from the refashioned KRS board.
In other news, Brent Aldridge has retired as KRS' director of alternatives. Anthony Chiu, who was hired as an alternatives senior analyst in August, will fill in as Mr. Aldridge's replacement. Mr. Peden said the KRS will likely search for additional assistance as some point.
KRS administers roughly $11 billion in pension assets and $4 billion in insurance assets.