The Nashville and Davidson County Metropolitan Employee Benefit System this week approved commitments to Centerbridge Capital Partners, Oaktree Capital Management, Garrison Investment Group and Courage Capital Management.
The board, which manages $1.8 billion in pension assets, made its largest single commitment of $30 million to Centerbridge Capital Partners II, reportedly targeting $3.7 billion.
Nashville committed $20 million each to Oaktree Europe Principal Opportunities Fund III, and Garrison Distressed Fund II, as well as a $25 million commitment to Courage Capital’s Credit Opportunities Fund II, which reportedly has a hard cap of $300 million.
The pension has a target allocation of 5 percent to private equity, 10 percent to real assets and 4 percent to infrastructure. Chief investment officer Fadi Bousamra told PEO the pension plans to reduce the total 19 percent target allocation to the three asset clasees by 2 or 3 percent, however, and should have a detailed asset allocation by early next year.
“We know we would like to get less equity exposure and be more opportunistic, and the current investment policy allows for that,” he said. “We have to make room for other opportunities that we’ve seen and that we’ve committed to.”
The pension has already invested in alternative fixed income, and will likely add to its investments in the asset class, Bousamra said. It will also consider real estate debt investments, as part of the allocation to real assets. “We’re looking at various areas going forward, but I don’t know that we’ll make any more [new allocations] this year,” Bousamra said.
The fund’s private equity program has a monetary value of $50 million.