Credit/Private Debt
The plan received private debt and private equity pacing plans at its investment committee meeting this week.
The search follows asset allocation changes approved in 2023.
The RFP will be issued next month as part of a private markets pacing plan.
The foundation added private equity, private credit and international developed markets equity strategies to its portfolio in the second half of 2023.
The searches are for international small-cap equity, emerging markets equity, real estate, private equity and private debt managers.
The commitment is part of the plan’s new portfolio structure, which introduced a 5%, or roughly $500 million, private debt target allocation in November.
The plan also named finalists in its private credit manager search.
Nonprofits still see opportunities in alternative asset classes, like smaller or specialized buyout strategies, venture funds or private debt strategies that benefit from macro trends like the higher interest rates, rapid development of artificial intelligence or transition to clean energy.
The plan made several commitments in alternatives asset classes in November and December.
2023 was supposed to be a down year for foundations and endowments with a potentially recessionary environment, however, equity and bond returns came out in the green, thanks in part to strong fourth quarters, leaving investors and allocators with a more optimistic outlook for their portfolios entering 2024.