PSERS commits to Sixth Street’s second BDC

The US public pension has backed Sixth Street's second private-to-public BDC.

Name: Pennsylvania Public School Employees’ Retirement System
HQ: Harrisburg, US
AUM: $70.31 billion
Allocations to alternatives: 30%

Pennsylvania Public School Employees’ Retirement System, advised by Aksia, has committed $250 million to the Sixth Street Lending Partners fund, according to the pension’s December meeting materials.

PSERS and Sixth Street have a long-standing partnership, with the LP having committed approximately $1.7 billion to Sixth Street-managed funds. The GP also represents PSERS’ largest exposure to the private credit market, with about $1.5 billion (NAV including unfunded commitments), as of 30 June, 2022.

The BDC, which is targeting $4 billion in capital commitments, primarily invested in senior debt in upper middle market US companies. It is the firm’s second BDC – Sixth Street Specialty Lending launched in 2010. Sixth Street has invested approximately $18.9 billion through direct lending investments since 2011, generating a 14.3 percent unlevered gross IRR.

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