Brett Johnson

The $85bn pension system is scrutinising collateral quality and documentation in private credit funds as it evaluates re-ups and new manager relationships

Pension embraces secondaries, more active portfolio-management approach, as it ramps up to a 5% allocation target

Negative headlines about evergreen funds contributed to the California plan’s decision to abandon its initial $140m investment in those vehicles.

Even as the $40bn system deals with short-term underperformance, its pacing into the asset class is expected to increase in the coming years.

Staff at the $620bn California pension expect the new and increasingly diversified program to perform well amid software exposure concerns and redemption pressure headlines.

The endowment is also optimistic about resilient office assets and a market rebound amid renewed leasing momentum.

Washington heard from its consultant, Albourne Partners, that ramping up a private credit allocation in a stressed market may allow for stronger documentation and higher spreads.

Investing and banking sector leads debate the extent to which private credit’s problems could spiral at the Milken Institute Global Conference 2026.

Retail investor redemptions are not being viewed as a troubling sign for private credit GPs, panellists say, echoing US SEC chair’s sentiment that asset class is not facing systemic issues.

Southern California pension with $9.5bn in assets approves plans for a third year of stepped-down private credit commitments as it draws closer to allocation target