Connecticut Retirement to launch specific private debt programme

The US public pension is targeting a 5 percent allocation to private debt upon its imminent addition to Connecticut's portfolio offering.

Institution: Connecticut Retirement Plans and Trust Funds
Headquarters: Hartford, United States
AUM: $32.30bn
Allocation to alternatives: 22.20%
Bitesize: $50-100m

Connecticut Retirement Plans and Trust Funds is intending to introduce a specific private debt allocation to its investment portfolio, according to materials from its April 2020 investment advisory committee meeting.

The pension’s target allocation for its new private debt offering will be 5.0 percent of its total portfolio and will be introduced at the expense of the existing high yield asset class. Connecticut Retirement is targeting two-to-three commitments to open-ended private debt vehicles across an initial three-year investment period, which will be supplemented by another two-to-three expected commitments per annum to closed-ended vehicles across the same investment period.

As illustrated below, Connecticut Retirement’s previous five commitments to private debt funds have comprised of commitments to two distressed debt vehicles and three focusing on subordinated / mezzanine debt investments.

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