Tennessee pension slates $160m to four credit funds

The Nashville & Davidson County pension system is investing with funds managed by Oaktree, Marathon, EIG and Anchorage.  

The $2.8 billion Nashville (Tenn.) & Davidson County Metropolitan Government Employee Benefit Trust Fund has made new commitments to four credit funds at up to $40 million each. The pension invested with new funds managed by Anchorage Capital Group, EIG Global Energy Partners, Marathon Asset Management and Oaktree Capital Management. The retirement fund invested with all these firms in the past, according to Pensions & Investments.

The new commitments include an investment in the Anchorage Illiquid Opportunities V, a credit hedge fund managed by Anchorage Capital Group in New York, which has historically posted strong (14-16 percent) returns on its predecessor funds. The Tennessee pension also invested in the EIG Global Private Debt Fund, managed by EIG Global Energy Partners.

Nashville & Davidson County committed to the Marathon European Credit Opportunities Fund III, a European distressed debt hedge fund managed by Marathon Asset Management. The New York-headquartered firm has been increasing its exposure to non-performing commercial real estate debt in this strategy.

The fourth $40 million ticket went to the Oaktree European Capital Solutions Fund, a European opportunistic credit strategy managed by Oaktree Capital Management. The alternative investment firm’s management expressed more interest in European private debt strategies on the firm’s second quarter earnings call last month.  Chief executive Jay Wintrob announced then that Oaktree had begun raising money for this fund, which will target proprietary direct loans to mid-market companies. At the time, the Los Angeles-headquartered firm also began fundraising for the European Principal Fund IV, which will focus on control investment opportunities in areas of dislocation or distress.