Texas County & District Retirement System, Austin, committed an additional $225 million to Crescent (TX) Direct Lending Fund, a separate account managed by private equity manager Crescent Capital Group.
The original commitment to the account was $25 million in July. In October, the $25.6 billion pension fund earmarked $100 million to Crescent Capital BDC, a closed-end fund also focused on direct lending.
The aggregate $350 million commitment to Crescent Capital's direct lending strategies completes — for the time being — the pension fund's rapid expansion of its direct lending portfolio, said Paul J. Williams, chief investment officer.
Trustees doubled the fund's allocation to direct lending to 10% at an April 6 meeting.
Since then, the investment team committed $450 million each to core direct lending separate accounts managed by Benefit Street Partners and Angelo Gordon & Co.
The addition this year of $1.1 billion to core direct lending strategies brings TCDRS' total committed or invested in the subasset class to about $1.7 billion, according to transaction reports.
Mr. Williams said “these three big relationships will fill our core needs for direct lending for awhile,” adding that the fund likely will continue to make smaller commitments to niche direct lending strategies similar to the $75 million earmarked in September to BBAM's Incline Aviation Fund for aircraft leasing and financing.