Indiana Public Retirement System committed a total of $100 million to private debt specialist Solar Capital Management, a new manager for the Indianapolis-based system.
The commitment was split evenly between SCP Private Corporate Lending Fund and SCP SF Debt Fund from the system's $283 million private credit portfolio.
Both direct lending funds will generate income for INPRS, investment staff told trustees during a board meeting Friday.
Portfolio managers will seek investment in control specialty finance solutions in asset-based, equipment and life-science loans. The private corporate lending fund also will invest in middle-market secured loans, a board report said.
Nicholas Detmer, the system's head of private markets and co-CIO, told trustees during the meeting that the allocation to Solar Capital Partners will add cash flow from middle-market direct lending and will help the system get closer to reaching the 4% target for the private credit asset class. The current weighting is 0.9% of defined benefit plan assets.
INPRS manages a total $37.5 billion of which $31.4 billion is in the system's defined benefit plan and $5.7 billion is in its defined contribution plan. The balance is managed in other state funds.
