Wisconsin pledges funds for Benefit Street, Apollo

The two credit commitments are among several the Badger State pension fund made in 2016.  

The State of Wisconsin Investment Board has set aside $150 million to vehicles managed by Apollo Global Management and Benefit Street Partners at the end of 2016.

The Madison, Wisconsin-based pension fund allocated $100 million to Benefit Street Partners Debt Fund IV and $50 million to Apollo’s European Principal Finance Fund III, according to PDI data.

SWIB currently sets aside 1 percent of its $102 billion fund for private debt. Other private credit investments made last year include $150 million to Lone Star Real Estate Fund V and $30 million Centerbridge Special Credit Partners II, according to PDI data.

Benefit Street held a first close on its fourth fund at $1 billion at year-end along with its Benefit Street Partners Special Situations at $500 million, PDI exclusively reported. The New York-based firm, which manages $18 billion, mainly works on deals without a private equity sponsor.

EPF III is currently seeking a $3.5 billion and has so far raised $2.29 billion, according to PDI data. The Pennsylvania Public School Employees Retirement System also committed $200 million to the fund. It invested in non-core assets of European financial institutions, including non-performing loans, bank repossessed real estate and other distressed assets.

New York-based Apollo manages more than $190 billion across credit, equity and real estate.