South Carolina Retirement Allocates $450M to Real Estate, Credit

The $47 billion South Carolina Retirement System is expanding its private markets exposure, having recently allocated over $450 million to its real asset and credit portfolios.

In real assets, Sculptor Capital’s latest real estate offering saw a $100 million commitment. Sculptor Real Estate V is focused on opportunistic investments. Sculptor’s real estate business was founded by Steven Orbuch in 2003 to make investments in real estate and real estate-related assets across North America and Europe.

The system’s private debt portfolio is projected to comprise up to 8% of assets. Officials established three additional commitments in the latter part of 2024.

D.E. Shaw’s Diopter Fund II received a $50 million allocation in October. The new fund is anticipated to focus on investments pertaining to capital relief, capital optimization, risk sharing, risk transfer, and other similar activities, including synthetic securitizations. The company has recently closed its multi-strategy credit fund, Alkali VI, with a total of $1 billion.

The Eagle Point Defensive Income Fund III received a $50 million investment in November. Eagle Point Credit Management’s strategy offers fixed-rate, unsecured loans to smaller, non-institutional funds governed by the Investment Advisors Act of 1940.

Francisco Partners’ FP Credit Fund III received a $40 million allocation. The firm’s latest fund is focused on distressed debt and mezzanine across a variety of sectors. Other institutional investors in the fund include the Illinois Municipal Retirement Fund and the Teachers’ Retirement System of Louisiana.