Louisiana Teachers' Retirement System, Baton Rouge, rehired Mesirow Financial to run about $400 million in active domestic small-cap value equities and approved two alternative fund commitments totaling up to $250 million.
The $24.5 billion pension fund's board approved the hiring and commitments at its meeting Thursday, said Dana T. Brown, director of public markets, in an email.
The pension fund issued a solicitation for proposals for a small-cap value manager in March due to the upcoming expiration of Mesirow's contract. At its meeting Thursday, the board voted to eschew finalist presentations and rehire Mesirow.
As of March 31, the pension fund's actual allocation to domestic equities was 22.9%; the target is 22%.
Investment consultant Aon Investments USA assisted with the search.
Also Thursday, the board approved commitments of up to $200 million to Ares Senior Direct Lending Fund III, a direct lending fund managed by Ares Management; and up to $50 million to LS Power Equity Partners V, a private equity energy fund managed by LS Power Equity Advisors.
The pension fund has previously committed to a number of Ares funds, most recently committing up to $25 million to Ares Special Opportunities Fund II in 2022. Its previous commitment to an LS Power fund was $50 million to LS Power Equity Partners IV in 2018.
As of March 31, the pension fund's actual allocation to alternative assets was 36.9%; the target is 35%.
Also Thursday, the pension fund's board named Apollo Global Management, Ares, Brigade Capital Management and HPS Investment Partners as finalists in its search for its first multiasset credit managers to run a total of up to $980 million.
The pension fund issued an SFP 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%. Mr. Brown said partial funding will come from reductions to the pension fund's emerging markets debt managers' portfolios, with the remaining funding to be determined.
Finalist presentations will likely take place at the board's June 1-2 meeting, with a selection expected shortly thereafter.
Investment consultant Aon Investments USA is assisting.
