Chicago Policemen's Annuity & Benefit Fund committed a total of $20 million to private debt funds managed by Alcentra and Monroe Capital at a board meeting Thursday.
Clareant European Direct Lending Fund III, which is managed by Alcentra, and Monroe Capital Private Credit Fund III each received a $10 million commitment, said Aoiffin Devitt, chief investment officer of the $2.6 billion pension fund, in an email.
Funding will come from the pension fund's core fixed-income portfolio, but the specific funds that will be tapped for the cash will be determined later, Ms. Devitt said.
The pension fund previously committed $20 million each to the predecessor funds in the Alcentra and Monroe Capital series in 2016.
The target allocation to private debt is 4%; as of March 31, the actual allocation was 2.6%, according to NEPC's first-quarter performance report for the pension fund.
