Connecticut approves $412.5m in commitments

The US public pension has backed five vehicles as it begins to build out its private debt portfolio.

Institution: Connecticut Retirement Plans and Trust Funds
Headquarters: Hartford, US
AUM: $35.23 billion
Allocation to alternatives: 21.70%

Connecticut Retirement Plans and Trust Funds confirmed $412.5 million worth of private debt commitments at its August 2020 investment advisory committee meeting, a contact at the pension informed Private Debt Investor.

The five commitments confirmed by the pension were allocated to two managers: O’Brien-Staley Partners and Goldman Sachs, with the latter’s asset management and merchant banking divisions both receiving commitments.

The O’Brien-Staley Partners commitments comprised $112.5 million to OSP Value Fund III and $37.5 million to OSP Value Fund III-B. The Goldman Sachs commitments included $75 million apiece to Broad Street Loan Partners IV and Private Middle Market Credit Fund II; alongside $150 million to West Street Strategic Solutions I.

The Goldman Sachs commitments mark the confirmation of a private credit partnership between Connecticut and the asset manager, which had originally been mooted at the July 2020 IAC meeting.

The $35.23 billion US public pension has a 5 percent target allocation to private debt that currently stands at 0.4 percent.

As illustrated below, Connecticut’s private debt commitments tend to favour North American vehicles providing both senior and junior lending capabilities, as well as those which acquire distressed debt.

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