Arizona PSPRS Shifting PE to Sector Specialists; Tulare County Weighs Maritime Credit Strategy

Arizona PSPRS Shifting PE to Sector Specialists

Tulare County Weighs Maritime Credit Strategy

Arizona Public Safety Personnel Retirement System is shifting its roughly $6.4B private equity portfolio toward sector specialists and middle-market companies, moving away from generalist managers as the pension looks for operators who can drive returns through earnings growth and operational improvement rather than leverage or multiple expansion. Deputy CIO Alex Dorf said that established specialist relationships could see commitments of $100M to $150M, with no single sector to exceed 25% of the private equity allocation, which currently sits at 23.2% of the $27.6B trust, below its 26% target.

Among other allocators, CalSTRS is on pace for roughly $9B in private equity deployment in 2026, with $7.1B already committed, as CIO Scott Chan pushes co-investments to 33% of annual deployment, up from 25% last year. Elsewhere, Tulare County Employees' Retirement Association is evaluating EnTrust Global's latest Blue Ocean maritime private credit fund, though trustees raised fiduciary concerns about vetting the manager outside a consultant-led process and approved no commitment.

On the commitment side, the New Mexico State Investment Council approved $1.15B across five private markets vehicles, including $300M to Brookfield Infrastructure Fund VI, alongside sizable commitments to a PIMCO income fund and a Mercer private equity fund-of-funds, while also hiring four small-cap equity managers; and the New York State Common Retirement Fund committed approximately $671M across private equity, real estate and venture capital in July, led by $250M to Arctos Partners-managed Excelsior Beyond CIV LP – a fund of one that will take a minority stake in Arctos itself – and $75M to Awani Capital Fund LP, the debut vehicle from Daphne Dufresne's middle-market buyout firm.

In GP fundraising updates, New York-based healthcare private equity firm Consonance Capital Partners has begun raising its third flagship fund, the followup to an $856M second vintage that closed in 2020; and Argos closed its ninth mid-market fund at €736M, 23% above target and 64% larger than its predecessor.

And in people news, Valerie Red-Horse Mohl joined The California Endowment as managing director of investments from the New York City Comptroller's Bureau of Asset Management, and Todd Hedtke joined Blue Cross and Blue Shield of Minnesota as treasurer and CIO, succeeding May Vang.