Florida State Board of Administration, Tallahassee, announced new manager hires, investments and commitments totaling $1.98 billion, said John Kuczwanski, communications manager, in an email.
The board, which oversees a total of $194.4 billion, including the $155.7 billion Florida Retirement System, hired Victory Capital Management to run $800 million in active emerging markets equities, which falls within the system's global equity asset class. Funding for the hiring of Victory's Sophus Capital division,comes from a similar portfolio managed by M&G Investments, which the board terminated due to the departure of the team's key portfolio manager, Mr. Kuczwanski said.
As of Oct. 31, the actual allocation to global equity was 54.1%; the target is 53%. Investment consultant Mercer assisted.
In private equity, the board committed $100 million to FS Equity Partners VIII, a middle-market buyout fund managed by Freeman Spogli & Co. As of Oct. 31, the actual allocation to private equity was 7.7%; the target is 6%.
Within its strategic investments asset class, the board committed $250 million to Blackstone Tactical Opportunities Fund III, an opportunistic fund managed by Blackstone Group; invested $200 million in Bridgewater Pure Alpha Major Markets, a global macro hedge fund managed by Bridgewater Associates; invested $150 million in ILS Property & Casualty Master Fund, an insurance-linked strategy managed by Credit Suisse Asset Management; and committed $150 million to Falko Regional Aircraft Opportunities Fund II, a private equity fund, and $125 million to the Florida Sunshine State Fund, a strategic investments private equity fund managed by J.P. Morgan Alternative Asset Management.
Also within the strategic investments asset class, the board committed $100 million to Atalaya Special Opportunities Fund VII, a distressed debt fund managed by Atalaya Capital Management. It also invested $50 million each to Aeolus Property Catastrophe Keystone PF Fund, an opportunistic/alternative reinsurance fund that specializes in property catastrophe insurance coverage managed by Aeolus Capital Management, and Juniperus Insurance Opportunity Fund, a reinsurance securities fund managed by Pillar Capital Management.
As of Oct. 31, the strategic investments allocation was 8.3%; the target is 12%.
Alternative investments consultant Cambridge Associates assisted with the private equity and strategic investments transactions.