Virginia Retirement Sets Aside $500M for Alternatives

The Virginia Retirement System, which manages $110 billion in assets, has chosen several alternative investment funds for its expanding investment portfolio, with a concentration on real assets and credit strategies.

In real assets, a $200 million allocation was made to Stonepeak Infrastructure Partners Fund V, a U.S. focused closed-end infrastructure fund. A $100 million commitment was made to USEF Sailfish Venture, a preferred equity investment in U.S. real estate. The pension fund’s real assets program is more than $14 billion.

In credit, a $200 million commitment was made to Ares Credit Secondaries, a closed-end fund managed by Ares Management that focuses on secondary credit interests.

The addition follows the termination of the Solus Core Opportunities fund, which no longer fit VRS’ objectives for the funds in the $16 billion credit portfolio, according to VRS spokeswoman Jeanne Chenault.