September 26, 2024
In the third quarter of this year, private credit continued to be a focal point for institutional investors, with a range of significant commitments guided by consultants across the U.S. public pension and retirement systems. These recommendations reflect the growing demand for alternative credit strategies, which have become an essential component of portfolio diversification amid economic uncertainty. Consultants such as RVK, Verus, Cambridge Associates, and others advised their clients to allocate substantial capital into credit funds spanning direct lending, opportunistic credit, and distressed debt.
RVK, for instance, recommended over $1.3 billion in private credit investments, with New York State Common Retirement Fund leading the way with a $400 million commitment to the Empire Credit Co-Investment Fund. Similarly, New Jersey Division of Investment and Los Angeles-based pensions made substantial allocations to funds managed by Grosvenor, CVC Credit Partners, and Fidelity, among others.
Other consulting firms, including Verus and Cambridge Associates, also steered institutional investors toward notable private credit funds. Verus oversaw allocations exceeding $550 million, highlighting Atalaya Special Opportunities Fund IX and Carlyle Direct Lending SMA, while Cambridge directed over $500 million into opportunities such as Atalaya and Primary Wave Music IP Fund 4. These commitments underscore the continued appeal of private credit as a tool for yield enhancement and diversification in pension portfolios.
In this article, we’re breaking down the largest public pension allocations to private credit from top consultants for the third quarter of 2024. By the end of this list, you’ll be able to understand which consultants are making the largest allocations.
New York State Common Retirement Fund - Empire Credit Co-Investment Fund: $400,000,000
New Jersey Division of Investment
GCM Grosvenor Emerging Manager PC SMA: $300,000,000
CVC Credit Partners European Direct Lending IV: $150,000,000
Teachers' Retirement System of Illinois - Park Square European Loan Partners Fund II: $100,000,000
Los Angeles Water & Power Employees' Retirement Plan - Victory Park Capital Asset Backed Opportunistic Credit Fund II: $75,000,000
Los Angeles Fire & Police Pension System
Fidelity Evergreen Private Credit Rated Fund LP: $50,000,000
Atalaya Asset Income Fund Evergreen: $40,000,000
Crestline Direct Lending Fund IV: $40,000,000
Monroe Capital Private Credit Feeder Fund V: $35,000,000
Atalaya Special Opportunities Fund IX: $30,000,000
KKR Asset Based Finance Partners II: $30,000,000
Vermont Pension Investment Committee - AG Credit Opportunities Fund III: $50,000,000
Indiana Public Retirement System
Atalaya Special Opportunities Fund IX: $200,000,000
Carlyle Direct Lending SMA: $50,000,000
Pennsylvania Public School Employees' Retirement - ACORE Opportunistic Credit II: $175,000,000
San Mateo County Employees' Retirement Association - GoldenTree Asset Management Master Fund Select Strategy: $60,000,000
South Carolina Retirement System Investment Commission (RSIC) - FP Credit Partners III: $40,000,000
Kern County Employees' Retirement Association - Magnetar Structured Solutions Fund LP: $25,000,000
Florida State Board of Administration
Atalaya Special Opportunities Fund IX: $200,000,000
Primary Wave Music IP Fund 4: $150,000,000
OIC Credit Opportunities Fund IV: $125,000,000
Kern County Employees' Retirement Association - Fortress Credit Opportunities VI: $25,000,000
Colorado Fire and Police Pension Association
Alchemy Special Opportunities Fund V: $22,000,000
Frazier Life Sciences Public Fund: $20,000,000
New Mexico State Investment Council - Pemberton Strategic Credit Fund IV: $150,000,000
State of Wisconsin Investment Board - FP Credit Partners III: $125,000,000
San Joaquin County Employees Retirement Association - Silver Rock Tactical Allocation 2024: $63,000,000
City of San Jose Police and Fire Department Retirement
Invesco Credit Partners Fund III: $21,000,000
Charlesbank Credit Opportunities Fund III: $21,000,000
Silver Point Distressed Opportunity Institutional Partners II: $21,000,000
City of Baltimore Employees' Retirement System - Frazier Life Sciences Public Fund: $15,000,000
Alaska Retirement Management Board - Ares Pathfinder Core Fund: $100,000,000
San Francisco Employees' Retirement System - Fortress Credit Opportunities VI: $75,000,000
North Dakota State Investment Board - Fortress Credit Opportunities VI: $50,000,000
Georgia Peace Officers Annuity Fund - Churchill Management/Nuveen: $10,000,000
Ohio Police and Fire Pension Fund
OHA Senior Private Lending Fund: $50,000,000
Fortress Lending Fund IV: $50,000,000
School Employees Retirement System of Ohio (OHSERS) - Loomis Sayles Credit Dislocation Fund II: $50,000,000
Kentucky Public Pensions Authority - Strategic Value Partners Continuation Vehicle: $35,000,000
Ventura County Employees' Retirement Association - Arbour Lane Credit Opportunity Fund IV: $50,000,000
Boston Retirement System - Siguler Guff Small Business Credit Opportunities Fund III: $30,000,000
The General Retirement System of the City of Detroit
Churchill Management/Nuveen Private Credit: $20,000,000
Siguler Guff Small Business Credit Opportunities Fund: $20,000,000
The General Retirement System of the City of Detroit
Monroe Capital Private Credit Fund: $10,000,000
Brightwood Capital Fund: $10,000,000
Wayne County-Employees Retirement System
Marathon Opportunistic Credit Fund II: $25,000,000
Bayview Credit Opportunities Fund: $10,000,000
Hialeah City Employees Retirement System
Churchill Management/Nuveen Private Credit: $15,000,000
PennantPark Credit Opportunities: $5,000,000
City of Fort Lauderdale Police & Firefighters' Retirement System - Bloomfield Capital Income Fund V: $5,000,000
St. Louis Public School Retirement System - Carlyle Direct Lending Evergreen Fund: $14,000,000
City of Southfield-Employees Retirement System
Marathon CMBS Fund: $5,000,000
PIA Fund: $1,500,000
Bloomfield Capital Income Fund V: $1,500,000
To explore more consultants and their private credit allocations, book a demo of Dakota Marketplace!
Koncheng Moua is the Director of Data Management and Strategy at Dakota.
