Fresno (Calif.) City Retirement Systems committed $100 million to two direct lending managers, said Stanley McDivitt, retirement administrator, in an e-mail.
The joint retirement board for the city's two pension funds committed about $50 million each to Monroe Capital Private Credit Fund II and Crescent Direct Lending Levered Fund, managed by Crescent Capital Group.
An RFI for direct lending managers was issued last year based on the recommendation of investment consultant NEPC.
Funding will come from MacKay Shields, which was terminated from a roughly $97 million high-yield fixed-income strategy. Mr. McDivitt cited the $2.6 billion system's desire to reduce its high-yield exposure to 5% from 10% as the reason for the manager's termination.