Tennessee Consolidated Retirement System, Nashville, hired four managers to run up to a total of $982 million within its strategic lending allocation, said Michael Brakebill, chief investment officer.
The $41.1 billion pension fund hired CIFC Asset Management and GE Capital to run up to $707 million in a customized direct lending separate account. The separate account is managed by CIFC with the backing of GE Capital’s bank loan business.
The pension fund also hired Oaktree Capital Management to run up to $100 million in a strategic credit separate account and up to $75 million in a real estate debt separate account, and also hired Hayfin Capital Management to run up to $100 million in a direct lending commingled fund.
The pension fund established a 5% target to strategic lending in September 2012. The target was established to have one-third each in bank loans, high-yield fixed income and other investments, which include mezzanine and direct loans.
In March 2013, the pension fund had hired Beach Point Capital Management and Brigade Capital Management to run up to $500 million each in separate accounts that addressed the broad range of strategic lending investments.
Investment consultant Strategic Investment Solutions assisted.