MassPRIM invests $125m with Anchorage distressed fund

Anchorage Capital’s Illiquid Opportunities V fund is seeking $1.25bn overall and expects to close by the end of March.  

The Massachusetts Pension Reserves Investment Management (MassPRIM) board pledged to invest $125 million in the Anchorage Illiquid Opportunities V fund at its February meeting.

The $60 billion pension plan is re-investing with the debt manager, having also placed $75 million with Anchorage Capital Group’s fourth illiquid opportunities fund in 2014.

“Anchorage Illiquid Opportunities V is an attractive investment for PRIM's distressed debt portfolio,” the pension wrote in a roundup of its new commitments. 

The fund is targeting $1.25 billion to invest in small to medium-sized companies primarily in North America and Western Europe. The vehicle expects to hold a final close by the end of this month, PDI understands.

An Anchorage spokesman declined to comment on fundraising.

The fifth fund also won a $150 million commitment from the Virginia Retirement System (VRS) in December. VRS’s investment was also a re-up. The $66 billion pension plan had previously invested $100 million in the fourth fund.

Anchorage Illiquid Opportunities IV also garnered commitments from the Metropolitan Government of Nashville and Davidson Country Employees’ Benefit Trust, the Overlook Foundation and the Peter G Peterson Foundation, according to PDI Research & Analytics. It held a final close at its $1 billion target in March 2014.

New York-based Anchorage is a credit-oriented firm with about $15.3 billion in assets under management.

Additional reporting by Marine Cole.