Virginia Retirement Earmarks $1B to Credit, Real Assets
The Virginia Retirement System invested $1 billion across its alternative investment strategies in recent months, including real assets and credit, according to the system’s meeting documents.
The $104 billion pension system committed $630 million to credit strategies, as officials terminated a $140 million Schroders debt portfolio that invested in both securitized and direct real estate debt investments.
From August to October, three closed-end funds were chosen for the credit program: Orchard Global EleganTree III ($150 million), Park Square Capital Partners V ($230 million), and Whitehorse Liquidity Partners VI ($250 million).
The EleganTree III fund, managed by Orchard Global Asset Management, invests in regulatory capital relief transactions, an asset-backed financing strategy. Park Square Capital’s latest fund focuses on European mezzanine loan investments. Whitehorse Liquidity Partners VI is the most recent fund from the Toronto firm’s private equity portfolio financing through structured liquidity solutions strategy.
In real assets, a $125 million commitment was made to Meadow Real Estate Fund VI, a closed-end commingled fund investing in opportunistic real estate in select global gateway cities. A $50 million allocation was made to Realterm Logistics Income Fund, an open-end fund investing in transportation related industrial properties in North America.
A $200 million commitment was made to Saba Arcadia Fund, a separate account that invests in publicly traded closed-end funds.