MainePERS puts $140m in private credit

The US public pension has backed two US-focused private credit vehicles.

Name: Maine Public Employees Retirement System
Headquarters: Augusta, US
AUM: $18.43 billion
Allocation to alternatives: 50.1%

Maine Public Employees Retirement System has confirmed up to $140 million in commitments across two private credit vehicles, according to materials from their recent Board of Trustees meeting.

The bulk of the capital is slated for Ares Senior Direct Lending Fund III, the latest instalment of Ares Management’s senior debt-focused fund series. As reported on Private Debt Investor, Ares is seeking a $10 billion final close for the fund. With a $100 million commitment, MainePERS joins Merced County Employees Retirement Association and The Teachers’ Retirement System of Louisiana as early LPs in the fund.

It is the second commitment that MainePERS has made to an Ares private credit fund in 2023, with €75 million having gone to Ares Capital Europe VI in February 2023. MainePERS has been a long term investor into funds managed by Ares Management, having committed to Ares Capital Europe V in September 2020 and Ares Capital Europe IV in April 2018.

The remaining $40 million has been committed to Sprott Private Resource Streaming & Royalty Annex, a side car of the Sprott Private Resource Streaming & Royalty Fund that held a final close in January 2022 having raised a little over $700 million in investor capital.

The $18.4 billion US public pension has a private debt target allocation of 10 percent, which currently sits at 8.6 percent. As of April 2023, its private debt portfolio was valued at $1.59 billion. As illustrated below, the pension has predominantly targeted corporate vehicles seeking senior debt returns.

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