NHRS to re-examine private debt pacing for rest of 2018 in June

The Granite State retirement plan has made two direct lending commitments this year.

The New Hampshire Retirement System will review the pacing of its private credit allocations for the rest of the year at next month’s meeting, a spokesman for the pension plan said in an email.

The $8.69 billion retirement plan will do a “six-month checkup” at its June meeting on commitments to the asset class for the last two quarters of 2018. For the year, NHRS allotted $250 million to be committed between both private debt and private equity across five to seven funds, according to a note from consultant NEPC. The limited partner’s portfolio allocation has a 5 percent allocation to each of the strategies.

So far, NHRS has committed $125 million to its private markets programme this year: $25 million to growth equity fund Industry Ventures Partnership Holdings V, $50 million to BlueBay Asset Management‘s BlueBay Direct Lending Fund III and $50 million to Monroe Capital‘s Monroe Capital Private Credit Fund II. The pension plan is a repeat investor in all three firms.

Between the private credit and private equity, $2.48 billion has committed since 2009, $920 million of which has gone to private credit. Some $540 million of that total has gone toward direct lending, $360 million to distressed debt and $20 million into mezzanine.

Last year the firm committed $100 million to distressed and $50 million to direct lending. On the private equity side, the firm committed $290 million in buyouts and co-investment funds; $50 million each to energy and growth equity; and $25 million to secondaries funds.