Tennessee Consolidated Retirement System, Nashville, hired Beach Point Capital Management and Brigade Capital Management to run $500 million each in the $36.6 billion pension fund's new strategic lending program, confirmed Chief Investment Officer Michael Brakebill.
The program, with a 5% target allocation, was approved by the pension fund's board of trustees in September. It has one-third each in bank loans, high-yield fixed income and other investments, which might include mezzanine and direct loans.
Mr. Brakebill said in a telephone interview that both managers have a broad base that will address a range of these kinds of investments.
Strategic Investment Solutions assisted.
Separately, the pension fund committed up to $100 million to KPS IV, managed by KPS Capital Partners, and up to $75 million to Bain Capital XI, both private equity funds. It is the pension fund's first investment with both firms.
Cambridge Associates assisted.