The commission overseeing the $177.8m City of Annapolis Police and Fire Retirement Plan voted earlier this year to allocate $5m each to Pimco’s Tactical Opportunities Fund and Oaktree Capital Management’s Global Credit Fund.
The allocations, approved last quarter following manager interviews, will be funded from cash.
Consultant AndCo recommended the investments as part of a plan by the retirement fund to consider new investment options.
The allocations further grow Annapolis’s private debt/private equity portfolio, which as of 30 September stood at $6.6m, or about 3.7% of the total portfolio.
Those figures include the $5m Oaktree mandate, but not the Pimco mandate, which hadn’t yet closed. Also in the private debt/private equity portfolio are two $4m allocations – one each to the Oaktree Real Estate Debt Fund II and Crescent Capital Group’s Crescent Mezzanine Partners VII fund.
Only $1m of the Crescent investment and $529,000 of the Oaktree Real Estate fund had been called as of 30 September. The target allocation to private equity/private debt is 1%, with a cap of 5%.
Annapolis also has a $30.9m FoHF/co-investments portfolio divided among Grosvenor Capital Management ($16.6m), Lighthouse Investment Partners ($9.3m), and EnTrustPermal ($2.4m in Special Opportunities Fund II and $2.3m in Special Opportunities Fund III).
From inception in June 2012 through 30 September 2018, that portfolio returned 6.5%, slightly underperforming its benchmark.
Annapolis Police & Fire ups private debt allocation on HFM InvestHedge.