The Ohio Police & Fire Pension Fund has approved $80 million in two private equity commitments, alongside another $150 million to credit strategies, according to meeting documents released on Thursday.
The pension will commit up to $40 million to the Francisco Partners Fund IV, a vehicle which is currently in market and has a $2 billion target. The fund will make investments in technology companies in North America, Western Europe and Israel.
The firm’s previous fund closed on $2 billion in 2011, and is averaging a 17 percent IRR according to performance data from CalPERS and Colorado PERA.
Black Diamond Capital Management IV will also see a commitment of up to $40 million. The credit-focused fund has a $1 billion target. BDCM looks for distressed opportunities in North America.
The pension’s private markets portfolio is valued at $711 million through October 30, 2014, or 4.9 percent of the total portfolio.
In addition, $75 million will be allocated to KKR Lending Partners II and GSO European Senior Debt Fund. Both of these vehicles are direct lending funds and are considered part of the pension’s high yield allocation. KKR Lending Partners II held a close on approximately $305 million in June, including a GP commitment of $50 million, according to Private Equity International’s research and analytics division.