The $43 billion Indiana Public Employees Retirement System (INPRS) committed $600 million to six new alternative investment strategies during June and July, according to an investment portfolio review delivered to the system’s board on Sept. 9.
During the period, INPRS made up to $350 million in new commitments in the real assets class. It allocated up to $100 million to iCON Infrastructure Partners VI. The fund will focus on small- to medium-sized core/core-plus infrastructure assets across Europe and North America.
INPRS also allocated up to $100 million each to Blackstone Real Estate Partners X, which makes diversified investments in opportunistic real estate and real estate-related investments primarily in the United States and Canada, and to ICG Sale Leaseback, which will focus on acquiring “operationally or mission-critical” real estate. ICG will primarily work with European tenants.
And INPRS committed up to $50 million to Bain Capital Real Estate Co-Invest Fund, which will invest in opportunistic real estate deals across the broader Bain Capital Real Estate platform.
The system committed $250 million to the private markets class. It awarded $100 million to Pathlight Capital Fund III, which seeks to lend to companies not typically serviced by direct lending funds through unique terms. And it awarded up to $150 million to Silicon Valley Bank Capital/SVB Innovation Credit Growth Fund IX. This fund uses a venture debt strategy, focusing on lending to mid-to-late stage growth businesses in the technology, software, health care, and life sciences sectors. The fund provides loans on a first lien, senior basis with equity upside through warrants.
INPRS also redeemed a total of $246 million from two multi-asset funds during the period. In the multi-asset class, it redeemed an $88 million account with King Street. King Street’s trades leveraged and distressed corporate credit, equities, securitized credit, and real estate, and it redeemed a $158 million account with Hudson Bermuda Fund, which invests in a wide range of insurance securities, including equity, debt, collateralized reinsurance, and weather derivatives.
As of July 31, INPRS’ defined benefit fund portfolio was allocated as follows: public equity 14.5%; private markets 16.6%; fixed income (ex-inflation-linked) 13.2%; fixed income (inflation-linked) 14.6%; commodities 2.3%; real assets 8%; absolute return 7.9%; risk parity 20%; and cash 2.9%.
