Justin Mitchell

The US pension's chief investment officer said the $17bn fund had enough cash on hand to handle the increased drawdowns.

The increased estimated fees for the Opportunistic Strategies portfolio come amid exactly the type of market dislocation for which the portfolio was partly designed.

CVC Capital Partners VIII is targeting just under $19bn.

The move comes as a wave of activist pressure sweeps up against major LPs.

The $254bn pension will slowly raise the allocation in a series of 'steps' but will not commit to a hard timeline for the process.

The pension's PE consultant says the changes will give it 'expanded' options for partners.

The $78.46bn pension made the commitments in September, but staff says they failed to agree on terms with KPS.

'Parts of the legacy portfolio do not have a prospect of generating a return commensurate with the risk and the illiquidity entailed, and may not provide a return at all,' CIO Narv Narvekar wrote.