Kentucky Teachers' Retirement System, Frankfort, committed up to $50 million to Apax Digital Fund II.
The $24.5 billion pension fund's investment committee disclosed the commitment to the buyout fund managed by Apax Partners at its May 20 meeting, confirmed Robert B. Barnes, deputy executive secretary and general counsel, in an email.
As of March 31, the actual allocation to alternative investments was 6.1%.
Separately, Mr. Barnes said the board at its meeting Monday approved reducing the pension fund's assumed rate of return to 7.1% from 7.5%.
The lower assumed rate of return was recommended by actuarial consultant Cavanaugh MacDonald Consulting following an experience study that resulted in the lowering of its inflation assumption to 2.5% from 3%, partially offset by an increase in the real rate of return assumption to 4.6% from 4.5%.
