Alternative Investment Fund

The Alternative Investment Fund invests in private equity and absolute return strategies.  In making alternative investments, the North Carolina Retirement System retains investment managers, rather than directly investing in alternatives.   By statute these investments are limited to 5% of total investments.

Private equity investments consist of ownership of young, emerging or established companies that are not publicly traded.  Investment in young or emerging companies is typically classified as venture capital.  Investments in more established private companies, usually falls under the heading of buy-outs. 

Absolute return strategies consist of a variety of investments that attempt to produce very consistent returns with low volatility.  These investments are typically made through a fund of funds manager.  A fund of funds manager acts on behalf of the North Carolina Retirement System to hire investment managers who employ various absolute return strategies.  The additional level of management is designed to ensure the requisite level of expertise and broad diversification.