Chicago Laborers launch direct lending search

NEPC, the pension fund’s consultant, has posted an RFP soliciting a direct lending manager to handle a $10 million mandate.  

The $1.4 billion Laborers’ and Retirement Board Employees’ Annuity and Benefit Fund of Chicago (LABF) is requesting proposals from qualified firms to handle a $10 million direct lending mandate. The search was posted by the pension fund’s consultant, NEPC.

Interested firms are asked to provide a net fund-level performance track record of the proposed strategy for the RFP, as well as information on underlying holdings. The firm must have at least $1 billion in institutional assets under management

Track record in the strategy should include at least one previous private direct lending fund. The current fund should have a fundraising target of at least $250 million, while the interested firm must also have been in operation as an investment management organisation for at least four years.

LABF and NEPC want the direct lending portfolio management team to have at least six dedicated professionals assigned to the fund and have asked for details on who the key professionals and portfolio managers will be, their education and experience, and back-up and other staff where appropriate.

Managers must also outline their experience in overseeing private debt direct lending funds, prior fund performance and loan-level default and recovery rates. They are also asked to explain their investment process, philosophy and style, as well as break out the fees they are charging on the strategy.

Managers must submit their responses by 23 September to ffadly@nepc.com.