North Dakota signs Cerberus for customized direct lending strategy

North Dakota State Investment Board, Bismarck, hired Cerberus Capital Management to run $200 million in a customized senior secured, middle-market, direct lending strategy, pending successful contract negotiations, said David Hunter, executive director and chief investment officer of the North Dakota Retirement and Investment Office, in an email.

In January, Ares Management was hired to run at least $200 million in a similar strategy.

Funding is expected to come from the existing fixed-income portfolio, although specific funding sources are still being determined, Mr. Hunter said.

The retirement and investment office oversees the $11.7 billion investment board, which includes pension fund and insurance assets. As of Dec. 31, the pension funds had a 23.2% fixed-income target allocation.