Suffolk County Council Pension Fund has made three commitments to M&G Investments in a move looking to boost its exposure to private debt.
The three commitments represent a total of £110 million in capital, according to agenda documents published on the pension fund’s website. The document notes the fund took the decision to make the commitments in November, keen to increase its exposure to illiquid debt.
£25 million in commitments has been made to M&G’s Illiquid Credit Opportunities Fund II (ICOF II). The commitment was fully paid in January, the pension plan’s documents note.
The pension fund has also made a £60 million commitment to M&G for its greenfield infrastructure fund, the document notes. An additional £25 million has also been committed to its debt solutions fund. These funds will be “funded through capital calls as investment opportunities are sourced,” the document says.
Suffolk County is not the only pension fund looking to allocate to infrastructure debt. In December, the Essex County Council Pension Fund issued a tender document seeking a manager for its £100 million infrastructure portfolio. The pension fund said it was open to infrastructure debt funds to manage part of this.
A spokeswoman from M&G declined to comment beyond the pension plan’s documents. A spokesman for Suffolk County did not return calls seeking additional comment by time of publication.