Tennessee Consolidated Retirement System, Nashville, announced four new commitments and hires totaling $750 million, Shelli King, spokeswoman for state Treasurer David H. Lillard Jr., who oversees the pension fund, said in an email.
The $49.5 billion pension fund hired Hayfin Capital Management to run a $300 million core illiquid European private debt portfolio. The separate account will invest in both direct lending and special situations strategies. The initial allocation of $300 million could rise to a maximum possible $500 million.
As of Sept. 30, the actual allocation to strategic lending was 5.1%; the target is 7%.
In private equity, TCRS committed $150 million each to ASF VIII, a secondary private equity fund of funds managed by Ardian, and Strategic Partners Fund VIII, a secondary private equity fund managed by Blackstone Group's Strategic Partners Fund Solutions. The pension fund previously committed $75 million to ASF VII in 2015 and $100 million to Strategic Partners Fund VII in 2016.
As of Sept. 30, the pension fund's actual allocation to private equity was 5.3%; the target is 7%.
In real estate, the TCRS committed $150 million to Blackstone Real Estate Partners IX, an opportunistic real estate fund managed by Blackstone Group.
As of Sept. 30, the pension fund's real estate allocation was 8.4%; the target is 10%.