- PE a top priority for $837 mln retirement system in 2015
- Ohio Highway Patrol to award PE fund of funds RFP in 2015
- Commits $10 mln to Kayne Anderson natural gas fund
The board approved an asset allocation model that maintained its 17.5 percent target allocation to alternative investments, which includes private equity, absolute return and hedge funds. Ohio Highway Patrol held a 17.6 percent allocation to alternatives as of December 2013, the most recent information on the retirement system’s website.
Ohio Highway Patrol will likely grant between $20 million to $30 million to a private equity fund of funds manager in 2015, General Counsel Dennis Smith said in an email. The finalists for the request for proposals will be interviewed at the system’s February meeting.
The retirement system, which manages $837 million, is capable of making direct commitments to individual fund managers as well, having committed $10 million to Kayne Anderson Energy Income Fund at its December meeting. The natural gas investment vehicle will serve as a complement to Kayne Anderson’s traditional energy funds, which focus on oil-related investments, according to meeting materials.
Kayne Anderson will charge Ohio Highway Patrol 75 basis points to 150 basis points for its commitment over the first three years, 75 basis points for the next four years, 50 basis points for the next three years and zero thereafter, according to report compiled by advisory firm Hartland & Co.