Arizona Public Safety pension commits to three debt funds

The $8b pension announced three investments in funds managed by Crestline, Czech and Freeport.

The Arizona Public Safety Personnel Retirement System (PSPRS) committed a total of up to $220 million to three private debt funds at a board meeting last Wednesday (25 May). 

 

PSPRS committed up to $75 million to Crestline Investor's Crestline Opportunity Fund III. Another recent investor in the direct lending is the San Joaquin County Employees Retirement Association . The fund's portfolio includes asset-backed equity, senior secured debt and subordinated debt.      

 

The $8 billion PSPRS also committed up to $75 million to SJC Direct Lending Fund III, managed by Czech Asset Management. Investors in previous iterations of the SJC Direct Lending Fund include the Michigan Department of Treasury .

 

Last month, Czech announced a $1.7 billion final close on SJC Direct Lending Fund III, exceeding its target of $ 1.5 billion. The manager has already invested about $215 million from the fund, offering primarily fixed rate senior secured loans to mid-market companies in the US with annual revenues of between $75 million to $500 million and EBITDA of between $7.5 million and $50 million.

 

PSPRS also made a commitment of up to $70 million to the Freeport First Lien Loan Fund, managed by Moelis Asset Management's direct lending platform, Freeport Financial. Last April, Freeport reached a first close of $160 million on the fund, which provides senior secured loans to mid-market borrowers. The fund is thought to have a target of $500 million.

 

Moelis Asset Management (MAM) is the holding company for a set of alternative asset management firms that includes Moelis Capital Partners, Chamonix Partners Capital Management and Freeport Financial. Combined, MAM has about $2.3 billion of assets under management and was formerly known as Moelis & Company.

 

Czech Asset Management invests in asset-backed first and second lien secured floating rate mid-market loans in Europe and North America. The firm is based in Old Greenwich, Connecticut and has about $4.3 billion in committed capital under management.

 

Crestline is an alternative investment firm that has $9.8 billion in assets under management and was founded in 1997. Based in Ft. Worth, Texas, Crestline has 73 employees and maintains additional offices in New York, Chicago, London, Toronto and Tokyo.