Kentucky Public Pensions Authority, Frankfort, made new commitments totaling $247.5 million.
The investment committee of the authority, known as the Kentucky Retirement Systems before April 1, confirmed Steven Herbert, executive director, office of investments.
The committee approved commitments of $100 million to Strategic Value Special Situations Fund V, a special situations fund managed by Strategic Value Partners; $75 million directly and$37.5 million in co-investments to MiddleGround Partners II, a middle-market buyout fund managed by MiddleGround Capital; and $35 million to small-cap buyout fund New State Capital Partners Fund III. All are existing managers for the authority, Mr. Herbert said.
As of Feb. 28, the actual allocation to private equity was 7.6%.
The Kentucky Public Pensions Authority was created by legislation enacted in April 2020. Effective April 1 this year, the authority has oversight over two new boards of trustees: the board of trustees for the $8.1 billion County Employees Retirement System, and a board of trustees known as Kentucky Retirement Systems, which continues to oversee the investments and administer the $3.4 billion Kentucky Employees Retirement System and the $327 million State Police Retirement System.
The two boards going forward will have two separate investment committees approving investment recommendations by KPPA staff and consultants.