The chief investment officer of Dallas Police and Fire Pension System (DPFPS) has stepped down, leaving the $2.8 billion fund to lean on investment consultant NEPC as the pension prepares to increase its private credit commitments.
Maples Fund Services said Monday (25 July) former DPFPS CIO James Perry began his role as the head of institutional investor solutions, a role in which he will help expand the firm’s product offerings.
“As the industry continues to evolve and institutional investors employ increasingly sophisticated investment strategies, it is important that they engage with knowledgeable and collaborative partners that can help them meet their objectives,” Perry said in an email. “Having worked with Maples Fund Services for a number of years in my previous roles, I have been consistently impressed with the firm’s innovative technology, high-caliber staff and service-driven approach and look forward to leveraging my experience to further develop the firm’s offering for institutional investors.”
DPFPS announced Perry’s resignation Wednesday (20 July), which went effective one day before the pension fund made the announcement. The DPFPS said it already has begun the search for finding a replacement for Perry, who took the CIO position last August.
The DPFPS has tapped executive search firm Hudepohl & Associates to help the fund find a new CIO, DPFPS executive director Kelly Gottschalk said. She said the pension fund is finalizing a job opening announcement but did say Hudepohl – which also helped to hire her at DPFPS – has already received interest in the CIO position.
In the note on its website, DPFPS said NEPC will help the fund move toward the new asset allocation structure approved at the 10 March meeting, an allocation that includes putting 5 percent toward private credit.
Representatives for NEPC were not available for comment.
DPFPS currently has $90.2 million, or 3.2 percent of its portfolio, invested in private debt. Many of those investments, which include commitments to funds with Lone Star Funds, are near their harvesting phase. As part of the allocation changes, the DPFPS plans to diversify vintage years.
At the March meeting, the pension fund also agreed to put $10 million into Riverstone Holdings’ Riverstone Credit Partners (RCP). While the fund set a $1 billion fundraising goal, it only reached half of that amount when it held a final close in May. The fund does deals ranging from $15 million to $75 million.
The New York-based Riverstone fund carries a 15 percent performance fee and a management fee of 1.5 percent on invested capital during its investment period, which is then reduced to 1 percent after the investment period is over. RCP, which has a 12 percent target IRR, trades distressed securities, offers direct loans and acquires bank debt.