The $14.4 billion Ohio Police & Fire pension fund has pledged $30 million to the Glendon Opportunities Fund, a first fund from Santa Monica, California-based Glendon Capital Management, a distressed manager that spun out of Barclays last year. The fund is targeting $1 billion in commitments overall, as PDI previously reported.
The Ohio pension made its decision at its November 18 board meeting. The investment will be placed in the pension plan’s private markets portfolio. That slice currently represents about 5 percent of the pension’s overall portfolio and Ohio P&F is working on raising it to 8 percent in the long term.
The Glendon fund is focused on distressed or dislocated credit opportunities primarily in North America and Europe. The firm was launched in April last year by Matthew Barrett, Barclays’ former head of distressed debt and his colleagues on the bank's distressed team, former managing directors Holly Kim and Brian Berman. The three of them were at Barclays from 2006 to 2013 and also previously worked together at Oaktree Capital Management.
The pension plan also made a $50 million investment in the AEW Partners VII fund as part of its real estate portfolio. The fund acquires distressed properties in primary or secondary markets across the US. This marks OP&F’s second investment in the tactical portion of the real estate portfolio this year, following a $50 million commitment to Greystar VIII. OP&F is also invested in some of AEW’s predecessor funds, including AEW IV and AEW II.