Virginia places $400m with credit funds

 The $67 billion Virginia Retirement System is investing in funds with KKR, Oaktree and Babson.  

The Virginia Retirement System has invested a total of $400 million with three credit funds in the past few months, according to documents released at a board meeting on Monday (4 May). The $64 billion pension fund wrote the largest check to the Oaktree Opportunities X/Xb Fund, the distressed debt vehicle that Oaktree Capital is closing soon on $10 to $11 billion. VRS placed $200 million with the Oaktree fund in February.

VRS also invested $150 million in the KKR Special Situations II fund on 13 April, the documents showed. That fund is raising between $2.5 and $3.5 billion and has garnered a slew of other commitments from US public pension funds recently.

In March, the Virginia pension fund also invested $50 million with the Babson Capital Gateway Mezzanine II fund.

VRS’s other recent commitments included $350 million worth of total investments in real assets via the Pantheon VA NRP, the Blackstone Real Estate Partners VIII and the Penwood Select Industrial Partners IV funds. The pension plan also invested $300 million in the TPG Partners VII private equity fund in February.