The London Borough of Newham has selected three managers to oversee an investment in private debt totalling over £110 million ($140 million; €131 million). BlueBay Asset Management, Permira Debt Managers and Brightwood Capital Advisors have been awarded contracts by the pension fund, according to an online tender document.
Newham was searching for debt fund managers offering internal rates of return between 6 and 8 percent, net of fees, according to the document. The pension fund also specified debt funds should have more than £400 million in assets under management.
Among other specifications outlined in the initial tender document was the requirement funds be unlevered and limit covenant-light deals. Newham also said it didn’t want its commitment to represent more than 20 percent of the assets in any one fund.
The London pension fund follows in the footsteps of the North Yorkshire Pension Fund, which has also made allocations to debt funds managed by BlueBay and Permira.
According to the tender document, 19 applications were received by Newham. The total amount of capital being committed by the pension fund to the three managers is £111.4 million.
Representatives of the three fund managers and a spokeswoman from the London Borough of Newham did not respond to requests for additional comment by time of publication.