New Hampshire commits to three debt funds

The $7.5 billion New Hampshire Retirement System (NHRS) is investing with two incumbent private debt managers and making a first-time commitment to a BlueBay Asset Management lending fund.

The pension fund’s re-ups include a $50 million investment in Monroe Capital Private Credit Fund II and a commitment of the same size to Gramercy Distressed Opportunity Fund III. It has invested with the predecessor funds of both these firms, said spokesman Marty Karlon.

NHRS is also investing €45 million in BlueBay Direct Lending Fund II. This marks its first investment with BlueBay, Karlon said. The London-based alternative investment firm is raising €1 billion for the strategy, as PDI previously reported. BlueBay is a wholly-owned subsidiary of the Royal Bank of Canada (RBC).

Chicago-based Monroe Capital is seeking $600 million, with a hard-cap of $750 million, for its second private credit fund. The first Monroe Capital Senior Secured Direct Loan Fund, in which NHRS invested $50 million, closed on $500 million in December 2013.

Gramercy Funds Management is raising its third distressed emerging market debt fund. Fundraising for the vehicle was launched in June, according to an SEC filing.

NHRS is also an investor in Gramercy’s second emerging market debt fund, in which it committed $50 million in 2013. That fund closed on $305 million in September 2013, according to Reuters. At the time, the vehicle’s top five exposures were Argentina (19 percent), Hungary (8 percent), Mexico and Kazakhstan (7 percent each) and the Czech Republic (5 percent). Gramercy is headquartered in Greenwich, Connecticut.