Connecticut Retirement Spreads $1.6B Across Multiple Private Markets
The $60 billion Connecticut Retirement Plans and Trust Funds made a series of allocations in private markets funds totaling over $1.6 billion at its meeting last week. The additional investments included allocations to the private infrastructure and natural resources, private real estate, private equity, and private credit portfolios.
The pension fund allocated up to $300 million to the Morgan Stanley CRPTF Co-Investment L.P. infrastructure series and up to $200 million to ISQ Global Infrastructure Credit II in the private infrastructure and natural resources sectors. The fund has made investments in the previous infrastructure equity flagship funds of I Squared Capital, ISQ Equity II and ISQ Equity III.
The Credit II offering is designed to invest in the same conventional infrastructure sectors as the firm’s equity funds, such as renewables and energy, transportation and logistics, digital infrastructure, environmental and utilities, and social infrastructure.
In private real estate, the fund announced a commitment of up to $150 million to Morgan Stanley CRPTF Co-Investment L.P. real estate series. The fund-of-one is managed by the Morgan Stanley Management Solutions Team.
In the private equity program, the pension fund committed up to $450 million to Ardian CT Private Equity Partners, which is expected to invest in single-asset continuation funds and GP-led secondaries.
In private credit, a $300 million commitment was made to CRPTF-SLR Credit Partnership, a customized portfolio managed by SLR Capital. The pension fund originally invested in the partnership in 2022 with a $300 million commitment.
Another €215 million ($226 million) went to ICG Europe Fund IX. The ICG fund invests throughout the capital structure of European mid-market and upper mid-market companies, largely through debt instruments.
“The State Employees Retirement Fund is now funded at the highest level since 2003, and the Teachers’ Retirement System at the highest level since 2008,” said State Treasurer Erick Russell. “Our recent success in generating strong investment returns has played a big part in that success, as we’ve capitalized on recent reforms and strategic adjustments.”