Colorado Fire & Police hires overlay manager, commits $73 million

Updated with correction.

Colorado Fire & Police Pension Association, Greenwood Village, committed $73 million to three funds and hired a currency overlay manager, said Scott Simon, chief investment officer of the $4.7 billion pension fund, in an email.

At its April 26 meeting, the pension plan hired Mesirow Financial for a $100 million notional currency overlay mandate with a 2% volatility target. Mesirow will complement the pension fund's existing currency overlay mandate with BNP Paribas Asset Management and manage major currency exposures within the pension system's private markets portfolio.

Separately, the investment staff approved a $25 million commitment to Questa Capital Partners I, a venture capital fund focused on venture growth equity investments in the healthcare sector managed by Questa Capital Management. It is a new relationship.

Also, the investment staff approved commitments of €20 million ($24 million) each to Incus Capital European Credit Fund III, a real estate credit fund focused on asset-backed loans, real estate credit and leasing opportunities in the Iberia region, and Three Hills Capital Solutions III, a structured equity fund managed by Three Hills Capital Partners focused on high-growth European midmarket companies. FPPA previously committed €18 million to Incus Capital Iberia Credit Fund II, while the commitment to Three Hills Capital represents a new relationship.

As of Sept. 30, the plan had 38.6% invested in public equities, 22.7% in illiquid alternatives, 14.7% in fixed income, 9.4% each in absolute return and long/short equity, 3.5% in managed futures and 1.7% in cash.