Merced County (Calif.) Employees' Retirement Association approved two new alternative fund commitments totaling up to $28 million.
The $1.1 billion pension fund's board at its meeting Thursday approved commitments of up to $20 million to Ares Senior Direct Lending Fund III, a direct lending fund managed by Ares Management; and up to $8 million to Taconic Credit Dislocation Fund IV, a real estate debt fund managed by Taconic Capital Advisors, said Kristen Santos, retirement plan administrator, in an email.
The pension fund previously committed up to $20 million to Ares Capital Europe VI earlier this year and up to $8 million to Taconic Commercial Real Estate Dislocation Fund III in 2021.
As of Feb. 28, the pension fund's actual allocations to opportunistic credit and direct lending were 5.5% and 3.4%, respectively; both have targets of 5%.
