OP&F Mulls Greater Exposure To Private Equity

The Ohio Police and Fire Pension Fund is in the midst of an asset-liability study that could result in an increase in the limited partner’s target allocation to the asset class. The study is expected to be completed this summer, at which point the pension fund’s board of trustees will decide what action to take.

OP&F, as the LP is known, has roughly $12 billion in assets under management. The pension fund’s current target allocation to private equity is 3 percent, and as of Feb. 29 the LP was invested in the space to the tune of 2.93 percent of its portfolio, equivalent to roughly $351 million.

If it decides to raise the target allocation, the LP’s investment staff would likely recommend putting more money directly into buyout funds throughout the United States and scaling back its exposure to domestic funds of funds and Ohio-based general partners. OP&F’s exposure to secondary funds and international funds of funds would remain the same or possibly increase, according to David Graham, the pension fund’s communications manager.

At the moment, the bulk of OP&F’s portfolio—roughly 80 percent—is invested in funds of funds and secondary vehicles. On the funds-of-funds front, the LP has backed managers such as Abbott Capital Management LLC, Adams Street Partners LLC, HarbourVest Partners, Horsley Bridge Partners Inc., Northgate Capital Group LLC, Park Street Capital, Peppertree Partners LLC and Wilshire Associates. Secondary fund managers OP&F has committed to include Landmark Partners, Lexington Partners Inc., Montauk TriGuard and Pantheon Ventures Inc.

Another 20 percent of the fund’s portfolio is invested in Ohio-based GPs, including Blue Point Capital Partners, Brantley Partners, Kirtland Capital Partners and Linsalata Capital Partners.

The pension fund is based in Columbus, Ohio, and its general consultant is Wilshire Associates.—J.P.