The Fire and Police Pension Association of Colorado (FPPA) has committed $20m (£14.7m) to a private capital fund managed by Aldine Capital Partners, which provides flexible funding to lower-middle-market companies in the US.

The pension fund revealed in an investment update that it had approved the commitment to Aldine Capital Fund V, a small business investment company vehicle providing flexible capital, including subordinated debt and equity, to lower-middle-market companies, primarily backed by independent sponsors.

Read more: CPP Investments says strong Q1 performance driven by real assets and credit 

Aldine Capital Fund V closed in July, with the manager reporting at the time that the fund was oversubscribed and had raised $308m in commitments.

Aldine Capital Partners is a Chicago-based private investment firm that provides junior capital financing to lower-middle-market companies. Since its founding in 2005, Aldine has raised more than $1bn in committed capital across five funds and completed more than 90 portfolio investments.

Read more: CPP Investments ploughs over $3bn into alternative credit

The pension fund’s private debt commitment was reported alongside other private markets investments, including private equity and special situations.

FFPA’s allocations were disclosed in an investment update that was discussed at a pension fund meeting held on 20 August.

Read more: Standard Life expands UK PRT offering