Vermont Pension Investment Committee, Montpelier, committed $70 million each to private debt funds managed by Benefit Street Partners and BlueBay Asset Management for the $4 billion Vermont State Retirement Systems, said Matt Considine, director of investments, in an email.
The committee took the action last week. It conducted a shortlist search for private debt managers following the creation of a 5% target to private debt as part of an asset allocation review in March. The other finalist was Comvest Capital Advisors.
In July, the committee approved hiring Artisan Partners (APAM) Asset Management and Hosking Partners to split an active global equity portfolio of up to $360 million, for the committee's new 9% target to global equity.
Also as part of the asset allocation review, the committee eliminated targets to high-yield bonds and core fixed income, which previously had allocations of 5% and 3%, respectively, reduced small/midcap equities to 3% from 5% and emerging markets equities to 4% from 6%.
Investment consultant NEPC assisted.