Kentucky Retirement Systems, Frankfort, hired Blue Torch Capital to run $200 million in a direct lending separate account.
The $11.7 billion pension fund's investment committee approved the hiring of Blue Torch in an April 15 meeting, a video of the meeting shows.
Blue Torch focuses on senior secured first-lien middle-market debt. A memo from Anthony Chiu, director of private equity/alternative assets, shows KRS will invest in a separately managed account with a similar strategy as Blue Torch's commingled funds.
As of March 31, the pension fund's actual allocation to opportunistic fixed income was 14.4%.