SBCERS approves $20m commitment

The US public pension plans to achieve its private credit target allocation by 2024.

Institution: Santa Barbara County Employees’ Retirement System
Headquarters: Santa Barbara, US
AUM: $3.86 billion
Allocation to alternatives: 26.46%

Santa Barbara County Employees’ Retirement System approved a $20 million commitment to Deerpath Capital VI, as mentioned during the pension’s June 2021 retirement board meeting.

According to retirement board documents, the fund managed by Deerpath Capital Management consists of primarily first-lien term loans to smaller, corporate borrowers in the lower middle market. It is expected to hold its first close in July.

The $3.86 billion US public pension’s private credit pacing plan, presented by investment consultant RVK, requires an annual commitment of $40 million in order to meet its 3.67 percent target allocation by 2024.

As illustrated below, the pension’s recent private debt commitments have been to senior debt funds targeting investments in North America. SBCERS currently allocates 1.93 percent of its full investment portfolio to private debt.

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