Institutional investors continued to deploy capital into private credit strategies in Q4, with investment consultants playing a central role in guiding allocation size, strategy mix, and manager selection. Amid persistent higher-for-longer rate expectations and ongoing volatility across public markets, consultant-led activity highlights private credit’s growing importance as a core portfolio allocation for income generation, downside protection, and opportunistic return potential.
Across the quarter, consultants steered capital toward a broad range of private credit strategies, including direct lending, opportunistic credit, special situations, distressed, asset-based lending, and CLOs. Large public pension systems anchored much of the activity, pairing sizable core allocations with targeted commitments to niche and co-investment vehicles. The data reflects a continued emphasis on manager specialization, structural flexibility, and strategy diversification as investors navigate a more complex credit environment.
Quarter-in-Review: Consultant Influence & Allocation Activity
During Q4, consultants including Meketa Investment Group, Cambridge Associates, Albourne, Hamilton Lane, RVK, Aksia, StepStone, Callan Associates, NEPC, and AON collectively guided several billion dollars into private credit commitments. Allocation activity spanned both commingled funds and co-investment vehicles, with opportunistic and direct lending strategies capturing a significant share of capital alongside growing interest in structured credit and CLOs.
For sales teams and managers tracking institutional demand, consultant-led private credit allocations continue to offer some of the clearest signals into how pensions are positioning portfolios for income resilience and selective upside. As consultants maintain a strong influence over pacing and portfolio construction, private credit remains a key pillar within institutional private markets allocations.
Want clearer insight into how consultants and pensions are allocating private credit? Book a demo of Dakota Marketplace to track consultant-led commitments and manager activity.
1. Meketa Investment Group: $5.814B
California Public Employees' Retirement Systems – $5.035B
- Ares Special opportunities Fund III – Distressed
- Ares Credit Investment Partnership (CP), L.P. - SME II Co-Invest Pool – Co-Investment Private Credit
- West Street Climate Credit Co-Investment (C) LP – Co-Investment Private Credit
- Three Pillars Flex Opportunities Fund – Opportunistic
- Ares Opportunistic Credit Investment Partnership (CP) LP – Opportunistic
- TCC Opportunities, L.P. – Opportunistic
- Three Pillars Private Credit Fund – Opportunistic
- Sixth Street Madrone Strategic holdings II – Opportunistic
- PPDP PCO III USD Feeder (Delaware) LP – Opportunistic
- West Street Co-Investment Partners (C), L.P. – Co-Investment Private Credit
- Equip Opportunities Fund – Opportunistic
- PPDP PSD III USD Feeder (Delaware) LP – Opportunistic
New Mexico State Investment Council – $600M
- Silver Rock Core Lending Strategy – Direct Lending
- OHA OLEND Co-Investment – Co-Investment Private Credit
- OHA OLEND – Debt
- Silver Rock Core LEnding Strategy Co-Invest – Co-Investment Private Credit
Oregon Public Employees Retirement – $100M
- Pathlight Capital Fund IV – Direct Lending
City of San Jose Police and Fire Department Retirement – $28M
- Eagle Point Defensive Income Fund III US – CLO
The City of San Jose Office of Retirement Services – $21M
- TPG AG Credit Solutions Fund III – Opportunistic
- Strategic Value Special Situations Fund VI – Distressed
- Arbour Lane Credit Opportunity Fund IV – Direct Lending
Merced County Employees’ Retirement Association – $10M
- 400 Capital Asset Based Onshore Term Fund IV – Asset-Based Credit
Louisiana State Police Retirement System – $5M
- Blue Owl Direct Lending – Direct Lending
2. Cambridge Associates: $1.845B
Florida State Board of Administration – $1.6B
- Miccosukee Partners HY, LP – Debt
- Bridgepoint Credit FSBA SMA SCSp – Direct Lending
- Ardian European Private Credit Strategies II – Direct Lending
- KKR Enhanced European Direct Lending Fund SCSp – Direct Lending
- Arini Credit US Fund – Direct Lending
San Francisco Employees’ Retirement System – $245B
- Arrow Lending Opportunities I A USD Feeder SCSp – Direct Lending
- Arrow Credit Opportunities III USD Feeder SCSp – Special Situations
- Centerbridge Special Credit Partners V – Special Situations
- Arrow Global SFERS Co-Invest – Co-Investment Private Credit
3. Albourne: $860M
Texas Municipal Retirement System – $750M
- LibreMax Structured Credit Fund – Structured Credit
- PIMCO Specialty Finance Income Fund – Special Situations
San Diego County Employees Retirement Association – $100M
- PIMCO CLO Opportunities Fund II – CLO
Dallas Police & Fire Pension System – $10M
- Arbour Lane Credit Opportunity Fund IV – Direct Lending
Stay ahead of institutional private credit flows across direct lending and opportunistic strategies. Book a demo of Dakota Marketplace to monitor consultant-led allocation activity.
4. Hamilton Lane Advisors: $580M
Connecticut Retirement Plans and Trust Funds– $580M
- CRPTF-RockCreek Emerging Manager Partnership, L.P. - Series II – Private Credit
- Eagle Point Defensive Income Fund III US Co-Invest – Co-Investment Private Credit
- Eagle Point Defensive Income Fund III US – CLO
- Sixth Street Specialty Lending Europe III – Direct Lending
5. RVK: $520M
New York State Common Retirement Fund – $335M
- OHA CLO Enhanced Equity Fund III – CLO
- PIMCO Specialty Finance Income Fund – Special Situations
- Zenzic Real Estate Credit Opportunities Fund – Opportunistic
Santa Barbara County Employees’ Retirement System – $100M
- TPG AG Asset Based Credit Evergreen Fund – Direct Lending
Montana Board of Investments – $50M
- CapitalSpring Investment Partners VII, LP – Debt
Kansas City Police Retirement System – $35M
- TPG Twin Brook Direct Lending Evergreen Fund – Direct Lending
6. Aksia: $496M
Virginia Retirement System – $326M
- ICG Europe Fund IX – Mezzanine
Los Angeles City EMployees’ Retirement System – $80M
- Nuveen Energy & Power Infrastructure Credit - US, LP - Fund II – Direct Lending
Fresno County Employees Retirement Association – $65M
- Nuveen Energy & Power Infrastructure Credit Fund II – Debt
- ACORE Opportunistic Credit II – Opportunistic
Fort Worth Employees Retirement Fund – $25M
- Fortress Credit Opportunities Fund VI – Distressed
7. StepStone: $480M
Teachers’ Retirement System of Illinois – $300M
- LCM Partners COPS 5 – Structured Credit
- CapitalSpring Investment Partners VII, LP – Debt
New York State Teachers Retirement System – $150M
- Biopharma Credit Investments V, L.P. – Special Situations
Los Angeles Fire & Police Pension System – $30M
- Charlesbank Credit Opportunities Fund IV – Opportunistic
8. Callan Associates: $475M
Illinois Municipal Retirement Fund – $375M
- Blue Owl Special Opportunities Fund IX – Special Situations
- TPG AG Asset Based Credit Evergreen Fund – Direct Lending
- TPG Twin Brook Direct Lending Evergreen Fund – Direct Lending
- MC Credit Fund IV – Direct Lending
San Diego City Employees’ Retirement System – $50M
- Blue Owl Senior Diversified Lending Fund I (USD) SCSp – Direct Lending
New Hampshire Retirement System – $50M
- Crescent Direct Lending Levered Fund IV – Direct Lending
9. NEPC: $390M
Ventura County Employees’ Retirement Association – $80M
- Pathlight Capital Fund IV – Direct Lending
- FoxPath Credit Secondaries Fund – Secondaries
Baltimore City Fire and Police Retirement System – $70M
- Apollo Asset-Backed Finance Fund – Asset Backed/Securitized
- Sixth Street Specialty Lending Europe III – Direct Lending
- Copia Credit Impact Fund – Opportunistic
The General Retirement System of the City of Detroit – $60M
- Monroe Capital Private Debt – Debt
- Comvest Credit Partners VII – Direct Lending
Boston Retirement System – $60M
- Mesirow Alternative Credit Finance Fund VII – Asset- Based Credit
- Tristan Capital Income Plus Strategy II – Structured Credit
- Pathlight Capital Fund IV – Direct Lending
San Antonio Fire & Police Pension Fund – $50M
- King Street Opportunistic Credit Evergreen Fund (Offshore), L.P. – Opportunistic
- Blue Torch Credit Opportunities Fund IV – Opportunistic
Metropolitan Government of Nashville & Davidson County Employees Benefit Trust Fund – $25M
- Hygieia One Credit Fund – Direct Lending
Howard County Master Trust – $25M
- Kennedy Lewis Capital Partners IV – Distressed
Seattle City Employees Retirement System – $20M
- ACORE Opportunistic Credit II – Opportunistic
10. AON: $310M
Teachers REtirement System of Louisiana – $200M
- Overland Advantage – Direct Lending
- Hark Capital V – Direct Lending
Kentucky Teachers Retirement System – $110M
- Carlyle Direct Lending SMA – Direct Lending
Allocation Discipline Remains Intact
Consultant-led activity in Q4 reinforced private credit’s role as a core allocation within institutional portfolios, particularly as investors continue to prioritize income generation, downside protection, and capital structure positioning. Across direct lending, opportunistic credit, special situations, and structured credit strategies, consultants guided pension systems toward managers equipped to navigate a more selective and complex credit environment.
As capital flowed into established credit platforms, repeat manager relationships, and targeted co-investments, a consistent theme emerged: consultants emphasized underwriting discipline, structural protections, and strategy diversification over yield-chasing behavior. With billions allocated during the quarter, private credit remains a strategically supported allocation, underpinned by sustained consultant confidence in the asset class’s ability to deliver resilient returns across market cycles.
Consultants continue to shape private credit portfolios. Book a demo of Dakota Marketplace to track institutional demand and allocation trends.
