News & Analysis

SURS shares private credit pacing plan

State Universities Retirement System of Illinois outlined its private credit pacing plan for 2023.

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Name: State Universities Retirement System of Illinois
Headquarters: Champaign, US
AUM: $22.4 billion
Allocation to alternatives: 22.68%

State Universities Retirement System of Illinois has published its private credit pacing plan for 2023, according to materials from the pension fund’s February board meeting.

Key highlights include:

  • The public pension aims to commit $500 million to private debt funds in FY 2023.
  • SURS wishes to diversify its fund commitments to European strategies, as its private credit allocations are North America-oriented. Moreover, the pension fund seeks to diversify across managers and vintage year.
  • The pension aims to expand its focus onto yield-oriented and asset-based credit strategies.
  • SURS outlines its emphasis on re-investing as opposed to distributing capital, to improve its Multiple on Invested Capital (MOIC).
  • As a common goal across all asset classes, SURS aims to target 20 percent of its annual commitments to emerging and minority, women and disabled-owned funds.

SURS of Illinois committed to four private credit vehicles in 2022. These include $50 million to Fortress Lending Fund III, $25 million to NB Private Debt Fund IV, $150 million to Ares Pathfinder Core Fund and $100 million to Silver Point Specialty Credit Fund III.

The pension fund’s private credit portfolio is managed by Meketa, a Boston-based investment consultancy. Since FY 2020, Meketa has executed credit commitments amounting to nearly $1.2 billion on behalf of SURS.

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