Natick pension fund to allocate $20m to direct lending funds
The $239m (£191.8m) Natick Massachusetts Contributory Retirement System is set to invest as much as $20m in direct lending funds.
The US pension fund has issued a request for proposals (RFP) from private debt managers offering direct lending strategies.
The retirement system covers the town of Natick, which is situated within the Greater Boston area. The five-person retirement board meets monthly to discuss the management of the retirement fund, with the last meeting being held on 24 April 2024.
In its 2022 financial statement, Natick Contributory Retirement System reported a portfolio split of 50.9 per cent in global equity, 21.21 per cent in fixed income, 18.1 per cent in private equity, 9.4 per cent in real estate, and 0.5 per cent in port. comp. strategies. There was no allocation to private debt or direct lending in 2022.
Read more: US pension fund Calpers to boost private debt exposure
A number of global pension funds and retirement systems have opted to make space in their portfolios for private credit recently, due to the rising popularity of the sector. Last year, the Chicago Teachers’ Pension Fund said it was preparing to make its first private credit investments.
Over the past few months, pension funds in Philadelphia, New York and Texas have all issued RFPs for private credit funds, while four of the largest pension funds in Canada have started to expand into the private sector market.
Read more: Private debt sector poised for influx of pension money