Florida State Board of Administration, Tallahassee, disclosed $4.7 billion in manager hires, commitments and investments during the fourth quarter, said John Kuczwanski, communications manager, in an email.
The board, which oversees a total of $216.9 billion, including the $170.4 billion Florida Retirement System, hired Investec Asset Management and Robeco Institutional Asset Management to run $900 million and $800 million, respectively, in active emerging markets equities. Funding comes from the termination of emerging markets equities portfolios managed by Aberdeen Standard Investments, BlackRock and Dimensional Fund Advisors.
Mr. Kuczwanski said the changes were the result of a re-evaluation of its emerging markets fund structure and that the board "determined to go in a different direction within the sector." He added that performance was not a factor.
As of Nov. 30, the actual allocation to global equities was 55.2%; the target is 53%.
Within fixed income, the board hired Lord Abbett & Co. to run $500 million in a short-duration credit strategy. Funding came from the reduction of a fixed-income portfolio managed by Amundi Pioneer Asset Management, which had $3.1 billion in assets as of June 30.
As of Nov. 30, the actual allocation to fixed income was 18.6%; the target was 18%.
General investment consultant Mercer assisted with the equity and fixed-income hires.
Within private equity, the board committed $600 million to Lexington Co-Investment Partners V, a buyout co-investment fund managed by Lexington Partners; $300 million to Asia Alternatives FL Investor III, a small leveraged buyout strategy in which FSBA is the sole limited partner and which is managed by Asia Alternatives Management; $200 million to KPS Special Situations Fund V, a special situations fund that targets investments in underperforming, distressed or bankrupt lower- and middle-market companies, and $50 million to KPS Special Situations Mid-Cap Fund, both managed by KPS Capital Partners.
Also within private equity, the board committed $50 million to The Rise Fund II, a private equity fund with an impact investing focus managed by TPG; €35 million ($39 million) to distressed debt fund OpCapita Consumer Opportunities Fund III; and $30 million to venture capital fund OpenView Venture Partners VI.
As of Nov. 30, the actual allocation to private equity was 7.3%; the target is 6%.
Within the board's strategic investments asset class, the board committed $200 million to J.P. Morgan Global Transport Income Fund, an infrastructure fund managed by J.P. Morgan Asset Management; and $180 million to MCP Private Capital Fund IV, a direct lending fund that will seek investment in midsize companies in multiple industries across Europe, managed by Metric Capital Partners.
Also within strategic investments, the board committed $150 million each to Miravast ILS Credit Opportunities, managed by Miravast Asset Management; SASOF V, a special situations fund managed by Carlyle Aviation Partners; Silver Lake Waterman Fund III, a technology-growth fund; and WestRiver Innovation Lending Fund VIII, a direct lending fund managed by West River Group.
The board also made a direct hedge fund investment of $150 million in Monashee Pure Alpha SPV I, managed by Monashee Investment Management.
As of Nov. 30, the actual allocation to strategic investments was 8.4%; the target is 12%.
Alternatives consultant Cambridge Associates assisted with the private equity and strategic investments commitments.
Finally, in real estate, the board committed $75 million to CBRE Asia Value Partners V, a non-core real estate fund managed by CBRE Global Investors.
As of Nov. 30, the actual allocation to real estate was 9.4%; the target is 10%.
Real estate consultant Townsend Group assisted.
