Kentucky PPA Plans Additional $35M Real Asset Investment

The investment committee of the Kentucky Public Pensions Authority (KPPA) has approved a recommendation to make an additional $35M commitment to a Strategic Value Partners (SVP) real asset investment, according to recently published board materials.

KPPA previously invested $65M in Strategic Value Special Situations IV (SVSS IV), a 2017 vintage fund with $2.85B in committed capital. Included in SVSS IV’s investments is a 65% ownership stake in “Project Spurs,” a 41-mile toll road in Texas running between Austin and San Antonio, which comprises 9% of the fund’s portfolio. 

Due to the “compelling value” it sees in retaining this ownership stake in the Spurs project beyond the 2025 expiry of SVSS IV, SVP has created a continuation vehicle to that end. According to the board materials, SVP will roll over all SVSS IV proceeds from Spurs into the new continuation vehicle, to which KPPA would add the new $35M commitment. The recommendation will move onto the KPPA board for ratification.

Per Dakota data, the Kentucky PPA oversees $25B in assets.

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