FCERA expected to commit $40m to EQT credit opps fund

The California pension fund is aiming to finalise a commitment to the fund which targets investments in European mid-market companies.

California pension fund Fresno County Employees’ Retirement Association (FCERA) is expected to complete a $40 million commitment to EQT’s third credit opportunities fund.

The commitment is listed on the firm’s fourth quarter investment results report, but the transaction is yet to be finalised, a representative for the pension fund confirmed to PDI.

EQT launched its third credit opportunities fund last year. The special situations strategy targets mid-market European companies struggling under excessive levels of leverage and needing an injection of capital to help with growth, according to the firm’s website.

So far, the Finnish Local Government Pensions Institution and Denmark-based Nordea Bank have committed to the fund, according to PDI data. Nordea had committed to the previous vehicle. 

EQT declined to comment.

In recent years, FCERA, a manager of more than $4 billion in assets, has invested in private credit strategies managed by Oak Hill Advisors, TSSP and GSO. Private credit accounts for 2 percent of the pension fund’s portfolio.

In addition to managing the credit opportunities fund, EQT operates a mid-market investment platform, which raised €530 million on a final close last year, as well as a senior debt fund. Both strategies target the European market.

Earlier this year, the firm promoted Paul Johnson to partner in its credit investment division. And in November, the firm teamed up with CVC Credit Partners on the underwriting of a £110 million ($141 million; €130 million)  unitranche loan to Paymentsense, a UK-based company not backed by a private equity sponsor.