Holyoke (Mass.) Contributory Retirement System is searching for at least one manager to run about $10 million in small- to middle-market private debt for the $250 million defined benefit plan.
This is a new allocation for the system, said Cheryl A. Dugre, executive director of the pension fund. The search is being conducted because the board has been concerned with its relatively small allocation to fixed income, but it is apprehensive about the effect of rising interest rates. So the private debt search will provide an alternative to fixed income, Ms. Dugre said.
Some of the funding will come from the liquidation of the plan’s $5 million commodities portfolio.
Only commingled investment vehicles will be considered. Separate accounts, credit hedge funds, funds of funds, infrastructure funds, real assets funds and 40 Act funds will not be considered.
Proposed strategies should be opportunistic corporate debt instruments that target unitranche, second-lien debt, mezzanine/unsecured securities and equity securities investments within small- to middle-market North American companies.
A copy of the RFP is available by contacting Ms. Dugre via email at [email protected]. Proposals are due by 4 p.m. EDT June 28. A selection date has not yet been determined.