Colorado Fire & Police Pension Could Boost Illiquid Alternatives Allocation by $250M

Apr 29 2016 | 10:10pm ET

The Fire & Police Pension Association of Colorado (FPPAC) has said it could commit an additional $150 million - $250 million to illiquid alternatives managers this year, according to an article in Pensions & Investments

The shift comes shortly after the $4.1 billion pension disclosed in February that it raised its allocation to illiquid alternatives from 20% to 23% of the total pension fund portfolio. At the time, declines in global equity markets, which in turn resulted in the fund’s liquid alternatives becoming unintentionally overweight, were cited as behind the change. 

Eventually, the fund wants illiquid alternatives – private equity, private debt, real assets, real estate and opportunistic investments, to comprise 25% of its portfolio.

So far this year, FPPAC has reportedly committed approximately $50 million in total across Mayfair Equity Partners, RiverRock European Capital Partners and Nautic Partners. For 2016, the pension fund plans to allocate a total of $200 million - $300 million across new and existing managers, P&I said.

FPPAC was formed in 1980 and administers a statewide multiple employer public employee retirement system providing defined benefit plan coverage as well as death and disability coverage for police officers and firefighters throughout the State of Colorado.

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