Connecticut Retirement Earmarks $1.1B to Private Credit, Real Assets

Connecticut Retirement Plans and Trust Funds selected new vehicles for its $2.1 billion private credit and $3.8 billion real estate programs.

The $52 billion Hartford-based pension fund committed $125 million to ICG North American Credit Partners Fund III, a private credit fund managed by Intermediate Capital Group (ICG), and $200 million to ICG Liquid Credit Strategies, including ICG Global Loan Fund and ICG Global Total Credit Fund.

Additionally, the fund committed to two European credit investments, directing €150 million ($164 million) to the ICG Europe Mid-Market Fund II and €150 million ($164 million) to a customized co-investment program.

Within real estate and real assets, the pension fund allocated $125 million to Penzance Properties‘ Penzance DC Real Estate Fund III; $200 million to Stonepeak Infrastructure Fund V; and $125 million to Homestead Capital USA Farmland Fund IV.

Additionally, principal investment officers Mark Evans and Denise Stake provided an overview of the recommended pacing plans for the private equity, private credit, real estate and infrastructure/natural resource asset classes totaling $5.5 billion.

The largest amount ($2 billion) is slated for private credit over 2024, and the more than $650 million to ICG is included in that figure. Real estate will see a boost this year with $1.1 billion, up from $500 million in 2023.

In private equity, there will be a slight dip in pacing with $1.7 billion in new capital in 2024 instead of $1.9 billion in 2023. Infrastructure and natural resources also saw a $175 million decline from 2023 to $650 million this year.