The Vermont Pension Investment Commission, Montpelier, committed $75 million to the KKR Direct Lending Evergreen Fund on behalf of the $5.8 billion Vermont State Retirement Systems, according to Andy Cook, an investment analyst with the Vermont State Treasurer's Office.
The commitment to the direct lending fund managed by Kohlberg Kravis Roberts was approved at a VPIC meeting on Oct. 31 and represents the commission's first commitment to a KKR fund, Mr. Cook said in the email.
As of Sept. 30, VPIC's allocation to private and alternative debt was 8.75%. Its target allocation is 10%.
VPIC also committed $50 million to Blue Owl Capital Real Estate Fund VI, a real estate value-added fund managed by Blue Owl Capital, and another $50 million to the AG Net Lease Realty Fund V, a real estate debt fund managed by Angelo Gordon.
The commitments to the two net lease strategies will diversify VPIC's core real estate exposure, Cook said.
VPIC had not previously invested with Blue Owl. It invested $50 million in the AG Realty Value Fund XI in September 2022.
As of Sept. 30, VPIC's allocation to core real estate was 3.55%. Its target allocation is 4%.
The three pension funds that make up the Vermont State Retirement Systems are the Vermont Municipal Employees' Retirement System, Vermont State Teachers' Retirement System and the Vermont State Employees' Retirement System.