MainePERS hikes alternative credit target allocation

The US public pension is aiming to boost its exposure to the asset class.

Institution: Maine Public Employees Retirement System
Headquarters: Augusta, US
AUM: $16.10 billion
Allocation to alternatives: 47.1%

Maine Public Employees Retirement System confirmed an increase in its target allocation to alternative credit from 5 percent to 7.5 percent at its January 2021 board meeting, a contact at the pension confirmed to Private Debt Investor.

The increase in target allocation to alternative credit, MainePERS’ asset class in which its private debt investments are housed, comes at the expense of the pension’s diversifying strategies portfolio which sees its target allocation drop from 10 percent to 7.5 percent.

The $16.1 billion US public pension had a 4.8 percent actual allocation to alternative credit as of September 2020, which was when the pension last released information regarding its portfolio composition.

As illustrated below, MainePERS’ recent private debt commitments have tended to target vehicles originating either senior, subordinated or mezzanine debt.

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