The Montana Board of Investments approved a $30 million commitment to Asia-focused direct lending fund Orchard Landmark II this month.
The 2015 vehicle, managed by OCP Asia, has also received the backing of Orange County Employees Retirement System.
According to data from PDI Research & Analytics, capital committed to closed-ended direct lending has fallen in 2016. However, fund managers are still seeing increased interest in the strategy, reflected in high levels of fundraising between 2013 and 2015, while Crescent Capital recently expanded its direct lending business to meet demand.
Furthermore, of the $245 billion targeted by closed-ended private debt funds in market, $125 billion is focused on direct lending.