Credit/Private Debt
The plan committed a total of $350 million across two commitments at today’s meeting.
The plan introduced new investment grade credit and private credit allocations as part of changes resulting from an asset/liability study.
The plan will look to add private credit, re-establish its private equity portfolio, add complementary real estate strategies and evaluate its domestic equity portfolio this year.
Plan has launched a private credit RFP intended to fill a maiden allocation to the asset class.
As nonprofit investors expect market volatility to continue, with the possibility of an economic recession on the horizon, many are seeking early-stage private equity, private debt, real estate, infrastructure or hedge fund strategies to capitalize on macro trends that include a slowdown in economic growth, rising inflation, emerging technologies and demographic trends.
The university also pivoted one of its retirement plans toward fixed-income during the fourth quarter.
The plan expects to choose a private credit consultant following finalist interviews with three firms scheduled for tomorrow.
The plan will consider multi-asset credit manager recommendations in March and terminated mandates with GMO and MetLife last week.
The consultant will advise the plan’s nearly $335 million private markets portfolio.
The changes followed two separate asset/liability studies from general investment consultant Verus.