Florida commits $350m to credit in the first quarter

The Florida State Board of Administration’s $6.4bn strategic investments portfolio - which includes commitments to private debt funds - had generated a 15.8% one year return as of 31 January, according to board documents.

The Florida State Board of Administration committed $350 million to credit funds in the first quarter, according to an investment summary provided by the institution.

Florida committed $150 million to Bayview Opportunity Fund IIIB, which targets mostly distressed real estate debt, and $200 million to Levine Leichtman Capital Partners V, which is targeting $1.5 billion for mezzanine investments. As of late March, Fund V had collected $361.8 million, according to a filing with the US Securities and Exchange Commission.

Florida has maintained a strategic investments portfolio since 2007, according to documents from the board’s March meeting. The portfolio includes investments in performing debt, distressed debt, mezzanine, absolute return funds, infrastructure, special situations and flexible mandates, among other strategies.

Florida had a 5 percent allocation ($6.4 billion) to those strategies as of 31 December. The board has targeted an 11 percent allocation, according to March meeting documents.

Florida bolstered that allocation in the fourth quarter when it committed $900 million across four funds, including GSO Capital Solutions II, CVI Credit Value II, IFM Global Infrastructure and Scout Capital Partners II.

As of 31 January, the portfolio had generated a 15.8 percent one year return, beating its benchmark by 6.8 percent. Performing debt and distressed debt had the strongest returns for the strategy, generating 20.6 percent and 18.7 percent respectively. Senior investment officer Trent Webster oversees the strategy.

Chris Witkowsky contributed to this report.