IPRS commits $300m to HPS and Carlyle – exclusive

The Indiana pension, which has a long history of credit investing, is boosting its exposure to senior debt.

The Indiana Public Retirement System (IPRS) has committed $100 million to Brickyard Direct Lending Fund and $200 million to CDL 2018-1, according to June board documents obtained by Private Debt Investor.

HPS Investment Partners will manage the Brickyard allocation, while The Carlyle Group will invest the CDL 2018-1. Both are set up as separate accounts and will be focused on senior debt, the documents show. The managers set both the investment and harvest periods for both funds to be three years. The closing dates for the Brickyard and Carlyle tickets were 19 April and 11 May, respectively.

Neither firm could be reached for comment.

Brickyard will invest alongside the HPS Specialty Loan Fund series and the HPS Core Senior Lending Fund in deals where additional capital is needed. The most recent SLF vehicle, HPS Specialty Loan Fund 2016, closed on $4.5 billion in October, including a separate $100 million commitment from IPRS. The Core Senior Lending Fund, which launched last year, has raised $982.34 million, according to regulatory filings submitted to the Securities and Exchange Commission.

The Carlyle commitment will focus on first lien loans to private equity sponsor-backed companies based in the US, the documents show. Carlyle also manages capital on IPRS’s private equity side, including the Indiana Investment Fund II – a direct investment fund managed by Carlyle and AlpInvest Partners that backs businesses within the state of Indiana.

IPRS has been investing in credit strategies since 1999. In December 2016, IPRS renamed its private equity bucket to private markets – an allocation that now includes private equity and private credit. The private markets portfolio makes up 12.05 percent of IPRS’s portfolio, which consists of 12.02 percent private equity and 0.03 percent private credit, according to the June meeting documents.