Credit/Private Debt
The fund approved a strategic new asset allocation that included a maiden target to private credit and increases to its allocations to private equity, bank loans, natural resources, infrastructure and cash at its board meeting last week.
Report finds 40% of U.S. and Canadian institutional investors plan to increase their allocations to private debt, while roughly one-third plan to grow their private equity holdings in the next three years.
The plan also made a direct lending commitment in the fourth quarter.
The retirement system hired three managers and made follow-on commitments to two existing strategies as part of an evergreen private debt search.
The pension trust is running searches for investment grade corporate credit and multi-asset managers to handle respective allocations of $660 million and $130 million.
The fund approved private equity and private credit commitments with existing managers as recommended by its general investment consultant last week, with more recommendations expected in the coming months.
The commitments include four new managers for the plan.
The hire follows a private debt search report conducted by the retirement system’s general investment consultant.
The pension plan approved four commitments totaling $110 million and 2024 real estate and real assets pacing plans yesterday.
The fund is expected to receive a private equity pacing plan proposal from its general investment consultant alongside private equity and private credit commitment recommendations at its board meeting this month.
