Indiana Public Retirement System, Indianapolis, committed a total of $600 million to six alternative asset managers and redeemed $246 million from two absolute-return funds between June 1 and July 27, according to a report provided to trustees during a Sept. 9 board meeting.
As of June 30, the system’s notional assets in the defined benefit plan totaled $41 billion, including derivative overlays. The plan has $36.1 billion in assets without the overlays.
The largest aggregate commitment was $350 million allocated to four managers from the $3 billion real assets portfolio.
Indiana committed $100 million each to Blackstone Real Estate Partners X, ICG Sale and Leaseback II and iCON Infrastructure Partners VI. The Blackstone fund focus on opportunistic real estate investments primarily in the U.S. and Canada. The Intermediate Capital Group fund will acquire real estate primarily in Europe “that is core to a leasee’s business or its occupational market and leasing the asset back to the company,” according to INPRS’ report, and iCON Infrastructure Partners VI will focus on small- to midsized core and core-plus infrastructure in Europe and North America.
Blackstone and ICG are existing mangers; iCON Infrastructure is a new firm for the pension fund.
Also from the real assets portfolio, INPRS committed $50 million to Bain Capital Real Estate Co-Invest, which will invest in opportunistic real estate deals across the firm’s real estate platform. Bain Capital is an existing manager for INPRS.
From the system’s $6.4 billion private markets portfolio, the investment team committed a total of $250 million to two existing managers.
SVB Capital was awarded $150 million for investment in SVB Innovation Credit Growth Fund IX, a venture debt strategy that focuses on lending to mid-to-late stage growth businesses in sectors including technology, software, health care and life sciences.
INPRS committed $100 million to Pathlight Capital Fund III, which looks for companies generally not served by direct lending funds and works with companies to offer terms that give them better custody and payback terms than typical with asset-secured loans, the report said.
Investment officers terminated two hedge fund managers from the DB plan’s notional $3.6 billion absolute-return portfolio.
Hudson Structured Capital Management was terminated for management of $158 million in Hudson Bermuda Fund. The fund’s portfolio managers invest in a broad range of insurance securities including equity, debt, collateralized reinsurance and weather derivatives.
King Street Capital Management was terminated for management of $88 million in a fund that includes corporate and securitized credit, equities and real estate. The name of the King Street hedge fund was not provided in report.
The INPRS report did not explain why the two hedge funds were terminated.
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