Arizona Public Safety commits $290 million to direct lending, private equity

Arizona Public Safety Personnel Retirement System, Phoenix, announced four new commitments totaling up to $290 million, said Christian Palmer, pension fund spokesman, in an email.

The $9.8 billion pension fund hired Audax Group to run up to $100 million in a direct lending separate account and committed up to $75 million each to Crestline Specialty Lending Fund II, a direct lending fund managed by Crestline Investors, and Stellus Credit Fund II, a direct lending fund managed by Stellus Capital Management. All three commitments are part of the credit opportunities allocation. As of June 30, the actual allocation was 15.26%.

The pension fund previously committed up to $75 million to Crestline Opportunity Fund III in 2016 and up to $70 million to Stellus Credit Fund I in 2015. The pension fund has not committed to Audax Group before.

The pension fund also committed up to $30 million directly and $10 million in co-investments to buyout fund LightBay Investment Partners A, managed by LightBay Capital. The pension fund's private equity allocation as of June 30 was 12.88%. LightBay is a new manager for the pension fund.