ICERS signs off on Portfolio Advisors commitment

The California pension fund selected the Damien, Connecticut-based alternative investment firm over three other bidders for private credit mandate. 

The Imperial County California Employees Retirement System has agreed to hire Portfolio Advisors with a $45 million commitment, Private Debt Investor has learned.

A spokesman for the fund confirmed that the ICERS retirement board selected Portfolio Advisors for the private credit mandate during its 15 February meeting.

Portfolio Advisors was among four finalists competing for the $45 million mandate, including KKR, Partners Group and Pathway, according to the meeting agenda.

The fund manager will invest the amount through an “evergreen” structure, with part of the allocation invested in the PA Opportunistic Credit Fund, and part in several diversified pool funds, according to a presentation released with the agenda.

The presentation also states a proposed target return of 13 percent net  internal rate of return and an emphasise on senior secured direct lending for the mandate. Portfolio Advisors will target at least 85 percent of the allocation in the US and 10 to 15 percent in Europe.

The fund declined to comment further, while Portfolio Advisors did not respond to requests for comment.

The El Centro, California public pension fund also has commitments in the PIMCO Bravo Fund ($10 million); KKR Mezzanine Partners ($10 million); and HarbourVest Partners IX Credit Opportunities Fund ($2 million), according to PDI data.

Portfolio Advisors, headquartered in Damien, Connecticut, manages $36 billion in assets, according the agenda presentation.