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PSP Investments targets €500 million for European credit portfolio

PSP Investments committed €500 million ($549 million) to a European public and private credit portfolio managed by AlbaCore Capital.

The commitment is one of the largest made by PSP Investments, the brand name of the Public Sector Pension Investment Board, which manages C$116.8 billion ($87.2 billion) in pension assets of Canadian federal public service workers, PSP said in a news release.

The AlbaCore fund will focus on high yield, leveraged loans and direct lending, among other credit investments. PSP Investments said in the release that it might add commitments to AlbaCore in the future.

AlbaCore was created this past summer by David Allen, who was managing director for credit investments at the C$287.3 billion Canada Pension Plan Investment Board, Toronto.

PSP Investments had 58.8% of its assets in public markets, including public debt, and 0.5% in private debt as of March 31. The private debt allocation started in November 2015 and PSP Investments has already committed C$2.4 billion to North American funds, according to the release.

PSP Investments manages the assets of the Canadian public service, Canadian forces, reserve forces and the Royal Canadian Mounted Police pension funds.