The Chicago Academics’ Pension Fund (CTPF) is making ready to make its first allocation to the non-public credit score market, and is now welcoming bids from funding managers.
The pension fund plans to make an preliminary funding of as much as $350m (£238m) within the sector, which will likely be cut up between a number of non-public credit score funding managers.
All bids must be acquired earlier than 19 January 2024, based on a doc on the fund’s web site.
The CTPF is Illinois’ oldest public retirement system, and represents greater than 94,000 members with property of simply over $12bn.
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Fernando Vinzons, chief funding officer for the CTPF, stated that any future allocation to the non-public credit score market will characterize about three per cent of the fund’s whole property.
“That is the primary time that the CTPF will meaningfully spend money on non-public credit score,” Vinzons stated.
The choice to enter the non-public credit score house got here after the board of trustees voted to undertake a brand new strategic asset allocation for the fund.
The fund trimmed its equities holdings outdoors the US within the second quarter of this 12 months, in an effort to make house for the brand new non-public credit score allocations.
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In line with Callan, the fund’s funding guide that can consider bids from potential non-public credit score managers, the pension fund will solely entertain bids from funding managers which have a minimal fund dimension of $500m.
The fund can also be on the lookout for managers with a so-called evergreen or draw-down construction. It won’t take into account secondaries methods, set off funds or area of interest merchandise corresponding to fossil fuels, life settlements or actual property.
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