San Diego County Employees Retirement Association is planning to commit up to $75 million to STCP CLO 2, which is managed by Sycamore Tree Capital Partners.
The $17.7 billion pension fund approved step one of the commitment process at its board meeting Sept. 19, according to a video of the meeting posted on its website.
Step two of the approval process, which is expected to occur at a subsequent board meeting, will include, among other things, confirmation that the operational due diligence and legal document review is complete, according to agenda materials.
A SDCERA spokesperson confirmed the board has authorized staff to work on the investment documents and return to the board for approval, which will likely occur in November.
STCP CLO 2 will primarily invest in the equity and junior mezzanine tranches of Sycamore Tree-managed CLOs as well as related loan accumulation warehouses, which are used to purchase loans prior to CLO issuance, according to board meeting materials.
This is the pension fund's first commitment to a Sycamore fund.
As of June 30, the pension fund had an actual allocation of 12.1% to private assets.
