Milwaukee City Employes' Retirement System plans to commit a total of $295 million to private equity managers in their next funds during 2020.
The $5.3 billion pension fund’s board approved its investment committee’s recommendation to make the commitments next year at its Sept. 23 meeting, confirmed David M. Silver, chief investment officer, in an email. The pension fund’s fiscal year begins Jan. 1.
The commitments, pending legal review, will be: $120 million to Mesirow Financial Private Equity Partnership Fund VIII, a private equity fund of funds; $100 million to NB Secondary Opportunities Fund V, a secondary private equity fund managed by Neuberger Berman; $40 million to Abbott Capital Management's AP 2020 private equity fund of funds; and $35 million to Private Advisors Small Company Private Equity Fund IX, a buyout fund of funds.
The pension fund has made multiple prior commitments to all four managers.
Separately, the board at the Sept. 23 meeting approved the investment committee’s recommendation to make slight changes to its long-term target allocation, Mr. Silber said. The board approved increasing the targets to fixed income to 26% from 25%, absolute return to 10% from 9% and private equity to 10% from 8%. The public equities target is decreasing to 43% from 47% and the real assets target, which contains real assets and real estate portfolios, remains unchanged at 11%.
As of June 30, the actual allocation was: 24.1% fixed income; 21.1% domestic equities; 16.6% international equities; 9.6% absolute return; 9.2% global equities; 7.7% each, private equity and real estate; 3.3% real assets and 0.7% cash.