Tennessee Consolidated Retirement System, Nashville, committed up to $820 million total to seven managers, said Shelli King, spokeswoman for Treasurer David H. Lillard Jr., who oversees the $44.4 billion pension fund, in an email.
Within the private equity asset class, the pension fund committed $160 million to buyout fund Roark Capital Partners V and $10 million to Roark Capital Partners II Sidecar. The latter is a "sidecar vehicle that will invest in a single portfolio company (essentially Arby's) in its pursuit of a portfolio of restaurant brands," Ms. King wrote. They are the pension fund's first commitments to Roark Capital Group funds.
Also within the private equity asset class, the pension fund committed $100 million each to General Catalyst Group IX, a venture capital fund managed by General Catalyst Partners, and H.I.G. Advantage Buyout Fund, a buyout fund managed by H.I.G. Capital. The pension fund previously committed $25 million to General Catalyst Group VII in 2013; its relationship with H.I.G. Capital is new.
As of Sept. 30, TCRS' private equity allocation was 3.9%; the target is 7%.
Within the strategic lending asset class, the pension fund committed up to $150 million (with a maximum allocation of $300 million if future follow-on commitments become available) to H.I.G. WhiteHorse Direct Lending Fund, managed by WhiteHorse Capital, the direct lending affiliate of H.I.G. Capital.
Also within the strategic lending asset class, the pension fund committed $125 million to ICG North American Private Debt Fund II, a mezzanine fund managed by Intermediate Capital Group, and up to $100 million to GSO Credit Alpha Fund II, a credit fund managed by GSO Capital Partners that invests primarily in privately originated loans and stressed or distressed public securities. The pension fund previously committed up to €50 million ($62 million) to ICG Europe Fund VI in 2015 and $50 million to GSO Credit Alpha Fund in 2014.
Also, the pension fund also made an additional investment of $75 million in a real estate debt separate account managed by Oaktree Capital Management, giving it a total of $225 million.
As of Sept. 30, TCRS' strategic lending allocation was 4.4%; the target is 7%.