Connecticut Retirement Adds $375M to Alternatives, Real Estate Grows to 8.5%

The Connecticut Retirement Plans and Trust Funds, which oversees 43 billion in assets, made two notable investments in its private investment and infrastructure and natural resources portfolios at this month’s Investment Advisory Council meeting.

Connecticut State Treasurer Erick Russell announced a $175 million commitment to Vistria Fund V, a small to mid-market buyout fund, and a $200 million allocation to Global Infrastructure Partners V was approved by officials as part of the pension fund’s infrastructure and natural resources program.

The pension fund had shifted away from equities over the past 10 years, which now total 45% of overall assets as private equity has averaged 8.9% of assets over the last decade. But the allocation has been gradually increasing. The real estate allocation was about 5% in 2013 but has grown to 8.5%.

“There’s no doubt that the market remains volatile,” said Treasurer Russell. “It’s important that the CRPTF remain focused on smart, strategic diversification, and we’ll continue to evaluate a broad scope of investment opportunities to continue to meet that goal.”