Colorado Pension Invests Over $550M in HF, Five Private Markets Funds
The Fire & Police Pension Association (FPPA) of Colorado, overseeing $7.4 billion in assets as of September 30, 2024, committed over $550 million in new allocations late last year, per February board meeting materials. This deployment spans a hedge fund plugged into its global equity program and five private market-focused funds.
Although the FPPA maintains a dedicated long/short program valued at more than $470 million, officials allocated $300 million to Arrowstreet Capital as part of its broader global public equity portfolio. By investing through a separately managed account, FPPA tapped into the Boston-based firm’s systematic equity approach. In 2024, the hedge fund program experienced asset withdrawals but still delivered annualized returns exceeding 12%.
In the credit sector, two new commitments were established, covering both North America and Europe. Angelo Gordon has been appointed as a new manager for the pension fund, securing a $175 million allocation for the Angelo Direct Lending Evergreen Fund. The firm anticipates raising $1 billion for this fund, which will focus on originating, underwriting, and managing senior secured, floating-rate loans for lower middle market companies supported by private equity in North America.
Crestline, an existing manager, received a $20 million commitment for its Crestline European Capital Solutions Fund III. This $750 million fund targets opportunistic capital solutions for lower-middle to middle-market companies in Northern and Western Europe.
NOVA, a real asset manager, secured a $30 million investment for its newest fund, NOVA Infrastructure Fund II. This $1 billion fund will target lower middle market opportunities in North America, spanning the energy, digital infrastructure, transportation, and environmental services sectors. NOVA Infrastructure is a newly appointed manager for FPPA.
Venture capital and private equity investments in December totaled $32 million. The larger of the two commitments was SEK240 million ($22 million) directed to Consolid Equity III. Managed by Consolid Equity, this fund targets the Nordic region with a micro buy-and-build strategy and is operated by a firm already managing assets for the retirement system.
Finally, Matchstick Ventures was onboarded as a new manager, receiving a $10 million investment for its Matchstick Ventures Fund IV. The $75 million fund aims to support early-stage technology firms based in North America, with a focus on the B2B software industry.
