The Council uses alternative investment strategies to reduce risk, enhance returns and diversify its holdings. These alternative, or private-market asset classes are ideal for long-term institutional investors like the SIC, seeking diversification benefits and a premium on investment returns in exchange for less liquidity.
Private Equity: the SIC invests in national and international private equity funds employing various private equity strategies including leveraged buyout, growth equity, mezzanine and venture capital focus.
Absolute Return: the SIC invests in absolute return strategies via a fund of hedge funds construction, where a single manager will invest on the Council’s behalf across a portfolio of diversified hedge funds.
Real Estate: the SIC invests in both open and closed-end real estate funds with various exposures, including core, value-add and opportunistic assets.
Credit/Structured Debt: the SIC invests in various credit and structured products, including asset-backed debt, collateralized loans and open-end credit funds.
Real Return: the SIC’s real return strategy is a combination of income-producing “hard” assets like infrastructure, timber and energy, combined with diversified inflation strategies like floating-rate debt and inflation-protected government bonds. The Real Return Pool is currently not available to clients.