Florida State Board of Administration, Tallahassee, disclosed just over $2.6 billion in manager hires, investments and alternative fund commitments completed during the second quarter in a new manager report released Tuesday.
The board oversees a total of $234 billion, including the $181.1 billion Florida Retirement System.
Within private equity, the board committed $600 million to Lexington Co-Investment Partners VI-F, a private equity co-investment fund managed by Lexington Partners; $200 million each to Asia Alternatives FL Investor IV, a small leveraged buyout strategy managed by Asia Alternatives Management in which FSBA is the sole limited partner, and buyout fund Hellman & Friedman Capital Partners XI; $86 million and $14 million, respectively, to oil and gas funds Quantum Energy Partners VIII and Quantum Energy Partners VIII Co-Investment Fund; and $75 million and $25 million, respectively, to buyout funds Hahn & Co. IV and Hahn & Co. IV-S.
As of May 31, the actual allocation to private equity was 9.6%; the target is 6%.
Within its global equity asset class, the board hired Schroders to manage $400 million in its hybrid energy strategy.
As of May 31, the actual allocation to global equity was 49.5%; the target is 53%.
Within real estate, the board invested $274 million in NorthPoint Tampa, a real estate portfolio in a joint venture between the board and MetLife Investment Management; $181 million in Central Port Logistics I, an industrial real estate portfolio in a joint venture between the board and Core and Value Advisors, an affiliate of Stockbridge Capital Group; committed $150 million to CL Forgotten Coast Fund, a real estate fund managed by Crestline Investors; $100 million to Fairfield U.S. Multifamily Value-Add Fund IV, a value-added real estate fund managed by Fairfield Residential; and $75 million to Bell Value Add Fund VIII, a value-added real estate fund managed by Bell Partners.
The board also made an additional investment of $93 million in KCS Icebox Venture, a cold storage property joint venture between the board and manager L&B Realty Advisors. The board originally invested $226 million in the cold storage joint venture in 2022.
As of May 31, the actual allocation to real estate was 11.4%; the target is 10%.
Finally, within its fixed-income asset class, the board hired Wellington Management to run $150 million in a core-plus fixed-income portfolio. The funding source was not provided. Wellington is the third fixed-income manager added by the board so far in 2023. In the first quarter, the board hired Loomis Sayles & Co. and Manulife Investment Management to manage $300 million and $150 million, respectively, in active domestic core-plus fixed-income portfolios.
As of May 31, the actual allocation to fixed income was 16.7%; the target is 18%.
Paul W. Groom II, deputy executive director, said in an email the global equity and fixed-income hires were funded from rebalancing.