News & Analysis

KCPSRS outlines private debt allocations

KCPSRS announces private debt policy allocations and reviewed private credit managers in its 6th November board meeting.

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Name: Kansas City (Missouri) Public School Retirement System
Headquarters: Kansas City, US
AUM: $749.6 million
Allocation to private debt: 5%

Kansas City Public School Retirement System (KCPSRS) announced updates in its maiden private credit programme in its 6 November board meeting.

The Missouri-based pension fund announced asset allocation targets for its private debt portfolio. The policy target for private credit is 5 percent, with a range of 4-10 percent.

The organisation’s investment consultant, Segal Marco Advisors, presented updates in their private credit manager search in the meeting. The IC shortlisted the following vehicles for consideration:

The fund managers were assessed against criteria such as institutional client bases, operational processes, investment team seniority, due diligence and terms and conditions.

Ultimately, Segal Marco Advisors recommended the hire of Churchill Middle Market Senior Loan Fund V. According to the consultant’s analysis, Fund V offers lower management fees and carried interest over the other candidates. Additionally, Churchill Asset Management will retroactively aggregate the assets of investors advised by Segal Marco Advisors, leading to a size discount.

Managed by Churchill Asset Management, the 2023 vintage fund has raised $729 million against a target of $3.5 million according to Private Debt Investor data. The direct lending fund has a regional focus in North America.

Kansas City Public School Retirement System will make its first private debt commitment in early 2024, as confirmed by the public pension.

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