Louisiana Teachers' Retirement System, Baton Rouge, approved manager hires and alternative fund commitments totaling up to $1.45 billion, spokeswoman Michelle Millhollon said in an email.
The $24.5 billion pension fund's board at its May 2 meeting approved hiring Ares Management and HPS Investment Partners to split up to $980 million in multiasset credit portfolios.
The pension fund issued a solicitation for proposals in February as a result of the creation of a new 4% target to multiasset credit. The board last June approved changes to its investment policy that included the new asset class, which falls within the overall fixed-income target of 14%.
Dana T. Brown, then-director of public markets, said in February that partial funding would come from reductions to the pension fund's emerging markets debt managers' portfolios, with the remaining funding to be determined.
Apollo Global Management and Brigade Capital Management were the other finalists.
Investment consultant Aon Investments USA assisted.
Separately, the board on May 2 approved commitments of up to $200 million each to Apollo Origination Partnership II, a direct lending fund managed by Apollo Global Management, and HPS Specialty Loan Fund VI, a senior lending fund managed by HPS Investment Partners; and up to $75 million to KPS Special Situations Fund VI, a special situations fund managed by KPS Capital Partners.
As of April 30, the actual allocation to alternative assets was 36.8%; the target is 35%.
