Kansas City Police Employees' Retirement Systems' board of trustees approved measures to increase its private credit allocation to 10% from 7% and to reduce the multistrategies hedge fund allocation to 8% from 11%.
The board also approved hiring Ares Management to manage the new private credit allocation, according to minutes from the Aug. 10 board meeting.
The remaining private credit allocation will continue to be managed by White Oak Global Advisors, said Jason Hoy, executive director of KCPERS, in an email.
Increasing the allocation to private credit and hiring Ares would benefit the retirement system's portfolios, "enabling the systems to diversify," according to the minutes.
Ares does not manage any other of the retirement system's portfolios, according to the minutes.
Mr. Hoy also confirmed that GCM Grosvenor is the sole manager of the multistrategies hedge fund allocation.
The allocation change and hiring of Ares were recommended by RVK, the pension fund's investment consultant.
KCPERS comprises the Police Retirement System of Kansas City, and the Civilian Employees' Retirement System of the Police Department of Kansas City, which are administered together, but are separate entities.
As of June 30, the police plan had $953 million in assets, while the civilian plan had $165 million in assets.