City of Fresno seeks direct lending manager

The $2.5 billion defined benefit pension fund is considering a debt commitment of up to $100 million.

The City of Fresno Retirement Systems are looking for proposals from investment firms to manage a private debt mandate of up to $100 million, according to a statement.

The focus of the search will be on US and Canadian strategies only and the manager must be raising a senior private direct lending fund, as posted on the website of investment consultant NEPC. Asian direct, mezzanine and fund of funds will not be considered. Up to $100 million may be committed to several private debt managers through 2015.

Candidates must have five years’ experience managing senior private direct lending strategies. The proposed fund must be raising at least $200 million and candidates must also have a minimum of $600 million in assets under management. The fund’s final close may not be earlier than 28 February 2015 and the manager must be registered with the Securities and Exchange Commission. The fund has invited applications via a request for proposal form to be submitted to NEPC by 4pm on 31 December.

NEPC, which recommended the investor seek a private debt strategy, was hired by the California-based Fresno Retirement System in January 2013. 

City of Fresno Retirement Systems, which includes the Employees Retirement System and the Fire and Police Retirement System, has $2.5 billion in assets under management.