The Fire & Police Pension Association of Colorado (FPPA) bolstered its private markets portfolio with $105 million in fresh commitments, directing $80 million to private equity and $25 million to credit strategies in late 2024. These moves expand the $7.3 billion pension’s existing $2.2 billion private markets allocation and $345 million credit portfolio.
Recently released meeting documents show FPPA recently added three private equity funds with exposure to financial, consumer services, industrial, business services and technology-enabled business services specifically.
FPPA committed $35 million to Cynosure Partners III, including $25 million to the main fund and $10 million for co-investments. The $750 million private equity vehicle targets minority stakes in founder and management-owned companies across financial services, consumer services, and industrial sectors. Salt Lake City-based Cynosure Partners, which invests in founder-led business, is a first-time manager for FPPA.
Existing manager Summit Partners received a $25 million commitment to its latest fund. Summit Partners Growth Equity Fund XII is a $9 billion offering that will make minority growth and control investments targeting companies with strong leadership, proven business models and a history of profitable growth, according to FPPA staff.
Lastly within private equity, staff approved a $20 million commitment to another existing manager, Chicago-based Periscope Equity. The firm’s Periscope Equity III is a $300 million fund intended to make control investments in lower middle market companies across four sub-sectors of technology-enabled business services.
The credit portfolio saw an allocation to Blue Torch, another existing manager in the FPPA investment portfolio. Staff approved a $25 million allocation to Blue Torch Credit Opportunities Fund IV, a $3 billion offering that invests in high-yielding senior credit facilities to companies in complicated situations.
Hedge fund changes
FPPA’s $467 million long-short equity portfolio reported a partial redemption in October 2024.
Sachem Head, which recently made headlines for building up its stake in pharmacy chain CVS, requested that the pension system put in a partial redemption totaling 25% of its commitment of $13.8 million. FPPA retains an investment of about $42 million investment with the activist hedge fund firm that was founded by Pershing Square alum Scott Ferguson in 2012.
The long/short equity portfolio at FPPA returned over 22% for the year ending Oct. 30, 2024.
