Chicago Policemen's Annuity & Benefit Fund is set to continue its flurry of manager searches, now seeking to build out private equity and private debt/opportunistic credit asset classes.
During a May 27 board meeting, trustees approved RFPs seeking private equity managers to run $20 million to $40 million in growth equity, special situations and co-investment strategies, said Thomas A. Beyna, board president and chairman of the investment committee, in an email.
The board also approved a search for firms to manage $10 million to $20 million in private debt, niche lending, opportunistic credit and/or private debt, Mr. Beyna said.
The number of managers sought for the private equity and private debt assignments has not been set.
As of Dec. 31, the $3 billion pension fund's actual allocation to private equity was 1.4% compared with the plan's 5% target, a quarterly investment report showed. The fund's actual allocation to opportunistic credit was 4.4% vs. a 4% target, and the private debt actual allocation was 2.8% vs. a 4% target.
The timing of the posting of the money manager RFPs on the policemen's fund website has not been set, but Mr. Beyna said it is expected to be soon, along with the RFP for custodial services that was announced in April.
At the May board meeting, trustees also approved additional allocations to two existing alternative investment strategies, with $12 million committed to Ullico Infrastructure Fund. The plan's initial commitment to the fund managed by Ullico Investment Advisers was $50 million in 2017, Mr. Beyna said.
The plan also committed an additional $15 million to Eagle Point Credit Management's collateralized loan obligation fund. The initial $20 million commitment to the fund was made in 2018.
Separately, the fund's April RFP seeking a passive manager with a broad selection of index fund strategies attracted responses from BlackRock, Legal & General Investment Management America, Mellon Investments, Metis Global Partners, Rhumbline Advisers, State Street Global Advisors and Xponance, Mr. Beyna said. Northern Trust Asset Management, the fund's current sole passive manager also submitted a bid.
At the June 24 board meeting, Mr. Beyna said trustees will review a shortlist of the passive mandate bidders to determine which firms will be invited to give finalist presentations later this year.
