Indiana Public Retirement System, Indianapolis, announced commitments totaling $211 million to three alternative investment strategies from the retirement system's $30.9 billion defined benefit plan.
Investment officers of the pension fund, who have investment discretion, informed trustees about the largest commitment awarded between meetings of $100 million to Hudson Structured Capital Management, a new manager for the fund, a report prepared for the board of trustees' Sept. 13 meeting showed.
The firm is a multistrategy reinsurance manager that invests in property and casualty, auto and other insurance sectors, the report said.
Spokesman Jeff Hutson did not immediately respond to a request for the name of the Hudson Structured Capital fund in which INPRS invested.
In the report, the investment team said Hudson was selected to replace incumbent reinsurance manager Nephila Capital "to invest in a more diversified reinsurance portfolio."
INPRS will redeem the $44 million invested in Nephila with 90% of the capital to be returned in October and the balance in April, the report to trustees said.
The additional source of funding for the $100 million Hudson mandate could not be learned.
INPRS plans to retain its $122 million investment in Aeolus Capital Management's reinsurance fund Aeolus Property Catastrophe Keystone Fund.
From the pension fund's $1.8 billion real estate portfolio, investment officials committed $75 million to a net-lease real estate fund managed by Angelo, Gordon & Co., an existing manager. The fund focuses on buying properties considered critical to a company's operations and leases them back to the company on a long-term basis, the board report showed. The Angelo Gordon portfolio management team seeks industrial, high-yield companies with improving credit.
Mr. Hutson did not respond to a request for the name of the fund INPRS' team selected.
Within the pension fund's $3.8 billion private equity portfolio, INPRS received $15 million in proceeds from the sale of Millennium Trust Co., a co-investment made in 2015 alongside buyout fund Parthenon Investors IV.
Investment officers explained to the board in their report that they rolled the $15 million in proceeds plus an additional commitment of $21 million into PCP MT Aggregator Holdings, also managed by existing manager Parthenon Capital Partners. The new fund has invested in Abry Partners, which bought Millennium Trust Co.
INPRS had a total of $37.1 billion in assets as of July 31. In addition to the defined benefit plan, the retirement system has $5.7 billion in the state's defined contribution plan and $472 million in other non-pension funds.
