Warwickshire County Council Pension Fund, Warwick, England, hired two private debt managers to run about £105 million and cut its entire allocation to hedge funds, a spokesman said.
The £2.1 billion ($2.9 billion) pension fund hired Alcentra and Partners Group to manage equal parts of a new 5% allocation to private debt. The new asset class replaces a 5% allocation to hedge funds, solely managed by Blackstone Group in a hedge fund of funds.
The decision was triggered by "new opportunity in private debt" and the pooling of local authority government pension funds, the spokesman said. The Warwickshire plan is joining the £43 billion Border to Coast Pensions Partnership, Tyne and Wear, England, following the consolidation of 89 local authority pension funds mandated by the U.K. government.