Three distressed managers fueled by LASERS

The $9.8bn pension revealed plans to invest in funds managed by Cerberus, Oak Hill and Gamut.  

The Louisiana State Employee Retirement System (LASERS) committed a total of $225 million to three distressed/special situations managers late last month (24 June), according to an email from Robert Beale, the pension's chief investment officer.

The $9.9 billion LASERS awarded $125 million to Cerberus Capital Management's Institutional Partners VI and $50 million each to both Oak Hill Advisors' OHA Strategic Credit Fund II and Gamut Capital Management 's Gamut Investment Fund I, according to the email.

Siguler Guff & Company was also among managers evaluated at last month's investment committee meeting .

Last month, PDI reported that Cerberus' Institutional Partners IV was thought to be nearing its hard cap of $4 billion.  According to documents presented to another investor, the fund will pursue distressed securities and assets such as non-preforming loans, residential and commercial mortgage securities and assets, corporate debt and structured loans.

OHA launched its distressed targeting $2 billion and investing in both the US and Europe.

The fundraising environment for distressed funds has strengthened recently as market turmoil has encouraged managers to launch such strategies. Solace Capital Partners' Solace Capital Special Situations Fund reached a $389 million second close in April, MHR Fund Management reached a $1.6 billion first close on its Institutional Partners IV fund in May and last week PDI reported that Angelo, Gordon & Co. had closed its energy-focused distressed fund on $650 million .

Cerberus is a New York-based private investment firm with $30 billion in assets under management. The firm specialises in distressed investing. Cerberus maintains affiliate offices throughout North America, Europe and Asia.

OHA is an alternative credit firm with $27 billion under management across strategies that include distressed funds, high-yield bonds, private lending, leveraged loans and real estate.

Gamut is a New York-based mid-market private equity firm founded in 2015 by former Apollo executives Jordan Zaken and Stan Parker.