Illinois Municipal Retirement Fund, Oak Brook, approved up to $555 million in manager hires and commitments at its board meeting Aug. 25, spokeswoman Maureen O'Brochta said in an email.
The $49.5 billion pension fund's board approved hiring Jefferies Financial Group to manage up to $125 million in a direct lending separate account. The board also approved commitments of up to $75 million each to Crayhill Principal Strategies Fund III, an asset-backed credit fund managed by Crayhill Capital Management; MC Credit Fund IV, a direct lending fund managed by MC Credit Partners; and Strategic Value Capital Solutions Fund II, an event-driven and special-situations private and public credit fund managed by Strategic Value Partners; and up to €50 million ($55 million) to Alchemy Special Opportunities Fund V, a distressed debt fund managed by Alchemy Partners.
The board also approved commitments of up to $50 million each to AshGrove Specialty Lending Fund, a direct lending fund managed by AshGrove Capital; MGG Structured Solutions Fund II, a direct lending fund managed by MGG Investment Group; and Pemberton Strategic Credit Fund III, a direct lending fund managed by Pemberton Asset Management.
The commitments approved at the Aug. 25 board meeting were the result of an RFP for managers of direct lending, opportunistic and distressed/special situations private credit funds the pension fund had issued in April after its board increased the long-term target allocation for alternative investments to 14% from 9.5%.
Ms. O'Brochta said at the time that the goal is to increase exposure to private credit funds over the next three years.
As of March 31, the actual allocation to alternative investments was 10.5%.
Investment consultant Wilshire Advisors assisted.