Chicago Policemen's Annuity & Benefit Fund trustees approved a commitment of $20 million to Monroe Capital Private Credit Fund IV, a private equity fund, during a board meeting Sept 30.
The $2.9 billion pension fund previously committed $10 million in 2018 to the prior fund in Monroe Capital's fund family and $20 million to the second fund in the series in 2016, said Thomas A. Beyna, president of the board of trustees and chairman of the defined benefit plan's investment committee, in an email.
Funding for the latest Monroe Capital fund came from the $40 million that was earmarked for a search for one or two private debt managers that started in July.
Mr. Beyna said the board will interview finalists for another private debt manager hire at its investment committee meeting Oct. 25.
The fund also began a search in July for one or two private equity managers, also for a total of $40 million, and trustees also will also hear finalists for this search Oct. 25.
The plan currently has $77 million allocated to private debt, Mr. Beyna said, noting that the current allocation to the asset class is 2.6%. The target weight for private debt is 4%.
Mr. Beyna said the plan currently has $68 million, or 2.3% of plan assets, managed in private equity. The target allocation for the asset class is 5%.