Credit/Private Debt
The plan disclosed recent private equity, credit and real estate commitments.
The asset class would be new for the two plans.
The pension plan has selected one firm to provide hedge fund, credit and real assets consulting services.
Higher interest rates and inflation has put pressure on the companies that undergird the private credit markets and nonprofits investors should be mindful of the of the potential cyclical risks.
The plan made $650 million in total private markets commitments during the first quarter.
The plan recently terminated three equity managers and made private markets commitments totaling $95 million.
The pension plan will consider approving a private debt manager search and a new 2025 fiscal year asset allocation policy for its four systems this week.
The pension plan approved three commitments with an existing manager relationship last week.
The plans approved commitments with two existing manager relationships last week.
The search is for senior direct lending managers.