Areas of interest to the $4.3 billion pension fund include small and mid-market buyouts, said Chief Investment Officer Tom Rick, but it has not yet been decided if the pledge will go to a fund of funds or directly to a fund.
Earlier this year, the Employees’ Retirement System of the City of Milwaukee picked
The pension fund’s current private equity allocation stands at about 2 percent, with a target allocation of 5 percent. The LP’s former consultant, Mercer LLC, recommended investing in private equity about two years ago as part of an asset liability study. “We didn’t have exposure, and we were trying to diversify the portfolio,” said Rick. “Our allocation at that time included public equity, fixed income and private real estate.”