Institution: Connecticut Retirement Plans and Trust Funds
Headquarters: Hartford, US
AUM: $35.23 billion
Allocation to private debt: 0.4%
Connecticut Retirement Plans and Trust Funds is looking to add to its roster of private credit managers, according to materials from the pension’s August 2020 investment advisory committee meeting. One potential manager under consideration is Fortress Investment Group, which is offering a SMA-structured partnership. Connecticut recently agreed a similar partnership with Goldman Sachs following a consideration outlined at Connecticut’s July investment meeting.
Highlights from Connecticut’s August 2020 investment committee meeting:
- Considering a $300 million commitment to the Fortress-managed SMA, which will offer exposure to two private credit strategies.
- Strategies include the origination/acquisition of senior secured loans via Fortress Lending Fund II; alongside capital opportunities surrounding distressed and junior debt via Fortress Credit Opportunities Fund V Expansion.
- Also considering a $250 million commitment to Sixth Street Partners’ open-ended Adjacent Opportunities Partners vehicle.
- Contemplating a $100 million commitment to Torchlight Debt Opportunity Fund VII.
Connecticut launched its standalone private debt portfolio in April 2020 with a long-term target allocation of 5 percent. Recent commitments to the asset class include three Goldman Sachs vehicles per the aforementioned partnership: $150 million to West Street Strategic Solutions Fund I; $75 million to Broad Street Loan Fund IV; and $75 million to Private Middle Market Credit II.
Laurie Martin is the pension’s chief investment officer. Prior to her appointment in May 2018, Martin worked as the pension’s deputy CIO from October 2016. The current deputy CIO is Raynald Lévèque, who joined the pension in January 2020 after two years at BNY Mellon.
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