Credit/Private Debt
The plan expects to commit to buyouts and special situations funds for the next three years.
The plan selected a pair of firms to fill a maiden allocation to the asset class.
The proposed portfolio structure would result in searches for core, credit, U.S. Treasury, emerging market debt, securitized products and bank loans.
The plan’s new private markets allocation will consist of one-third private equity, one-third private debt and one-third real estate/real assets.
The plan will issue an RFP seeking managers to enhance returns within its fixed-income portfolio.
The plan liquidated its emerging markets equity fund-of-funds mandate and made $1.3 billion in total commitments in June.
The commitments include a first-time investment for the plan.
The asset class represents a new one for the plan, which is targeting managers to handle between $3 million and $5 million.
The retirement system is looking to make a first-time investment in the asset class.
The plan approved the commitment as part of its pacing plan last month.