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Ohio Police & Fire forms PE co-investment program

Ohio Police & Fire Pension Fund approved the creation of a private equity co-investment program at its Oct. 23 meeting, according to the system’s director of communications, David Graham.

The program, which would also pursue private debt opportunities, would “create an efficient, workable process and structure” for private equity, investment notes showed.

“Co-investments can average down overall program costs, provide greater control over the pace of investment as well as geographical, industry and capital structure exposure, and offer the potential to enhance returns through proper deal selection,” according to investment notes.

It’s unclear when the first co-investment opportunity will take place and the system isn’t providing any additional information, Graham said in an email.

In addition to the PE co-investment program, OP&F approved a $50 million commitment to Annaly Credit Opportunities Fund, which focuses on middle-market lending opportunities in stable industries. Target size for the fund wasn’t available.

OP&F also committed $20 million to Odyssey Investment Partners’ sixth fund, which focuses on the industrial and business services sectors in North America. The investment is the system’s sixth to its private markets portfolio this year. Target size for Odyssey Investment Partners VI was not available.

The board set a $120 million target for its private market portfolio for 2019. The Odyssey Investment commitment brings 2019’s total to $118 million, according to investment notes.

OP&F’s private credit portfolio sits at 2.4 percent, on a 5 percent target, and is valued at $372 million. The private markets portfolio is worth $1.33 billion, or 8.4 percent, exceeding its 8 percent target.

Action Item: Check out OP&F’s agenda here.