Pennsylvania SERS approves $125m in commitments

The US public pension fund shuffles its private credit sub-asset class portfolio.

Institution: Pennsylvania State Employees’ Retirement System
Headquarters: Harrisburg, United States
AUM: $38 billion
Allocation to alternatives: 26.8%

Pennsylvania State Employees’ Retirement System has approved $125 million-worth of commitments across two distressed debt vehicles, according to the pension’s latest board meeting notes.

The commitments comprise $75 million to Clearlake Opportunities Partners III and $50 million to Sixth Street Structured Credit Opportunities Fund V.

Penn SERS has a target allocation of 4 percent for its private credit investments, which currently stands at 5 percent. The private credit portfolio is broken down into three sub-asset class strategies: diversified credit, direct lending and distressed debt. The commitment to Clearlake Capital Group was from the diversified credit strategy, Sixth Street‘s from the distressed debt portion.

Illustrated below is the $38 billion pension’s full investment portfolio, private credit sub-strategy breakdown and recent fund commitments.

Platinum subscribers may click here for the investor’s full profile, including key contacts, allocation strategy and fund investments.