Institution: Virginia Retirement System
Headquarters: Richmond, United States
Allocation to alternatives: 25.26%
Virginia Retirement System (VRS) agreed to commit $200 million to two private debt funds in its January board meeting, a contact at the pension informed Private Debt Investor. The two commitments comprised of $150 million to SSG Capital Partners V and $50 million to EIG Energy Fund XVII. SSG Capital Partners V targets special situation and distressed investments in Asia-Pacific, whereas EIG Energy Fund XVII is an infrastructure debt fund.
The $80.2 billion US public pension has a 2.95 percent allocation to private debt.
As illustrated in the charts below, VRS made commitments to nine private debt funds in 2017 and 2018, with these commitments totalling over $1.37 billion. Five of these funds are focused on subordinated/mezzanine debt origination, four concern the acquisition of distressed debt and the final fund targets the origination of unitranche debt.
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