Institution: Strathclyde Pension Fund
Headquarters: Glasgow, United Kingdom
Strathclyde Pension Fund has awarded private corporate debt mandates to three fund managers following an RFP issued in late 2019.
Alcentra, Barings and Partners Group have proved successful following a final tender, with the managers being awarded a 1.25, 1.25 percent and 1.0 percent share each of Strathclyde’s 3.50 percent private corporate debt portfolio. The market value of Strathclyde’s private corporate debt mandate is between £300-£600 million of total investments.
Criteria within Strathclyde’s RFP included the following: a history of success raising capital within defined periods; approval by fellow UK Local Government Pension Schemes to manage private corporate direct lending opportunities; and five years’ worth of previous experience managing such opportunities.
The £23.08bn UK public pension has a 4.50 percent current and target allocation to private debt. Within this 4.50 percent allocation, 3.50 percent is specifically designated towards private corporate debt with the remainder allocated to real estate debt.
As illustrated below, Strathclyde has made five commitments to private debt funds with a vintage year of between 2015 and 2019, which combined constitute £263.44 million.
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