Tennessee Consolidated Retirement System, Nashville, made five new manager hires and commitments totaling up to $1.5 billion, said Shelli King, spokeswoman for state Treasurer David H. Lillard Jr., who oversees the $52.3 billion pension fund.
In its strategic lending asset class, TCRS hired Ares Management to run a direct lending separate account. The pension fund approved a $750 million initial allocation to the manager, with a maximum potential allocation of up to $1 billion.
As of June 30, the actual allocation to strategic lending was 5.6%; the target is 7%.
Within real estate, the pension fund committed up to $250 million (with an initial investment of $100 million) to Prologis Targeted U.S. Logistics Fund, an open-end core real estate fund, and $100 million to Exeter Industrial Value Fund V, a value-added real estate fund managed by Exeter Property Group.
As of June 30, the actual allocation to real estate was 8.8%; the target is 10%.
Within private equity, the pension fund committed $100 million to Denham Oil & Gas Fund II, an energy infrastructure fund managed by Denham Capital Management, and $50 million to TA Select Opportunities Fund, a private equity fund managed by TA Associates.
As of June 30, the actual allocation to private equity was 6.3%; the target is 7%.
