Denver Employees Retirement Plan committed $25 million to Sankaty Credit Opportunities V, a distressed debt fund managed by Sankaty Advisors, confirmed Randall Baum, chief investment officer.
It is the $1.8 billion pension fund's first distressed debt investment, Mr. Baum said in a telephone interview.
The pension plan will fund the Sankaty commitment, as well as $50 million committed to Golub Capital in May for senior secured loans, through the October termination of Seix Investment Advisors' $74 million high-yield strategy. The pension fund is moving to private debt from high-yield strategies.
Investment consultant Summit Strategies Group assisted with the shortlist search.