Kentucky CERS Commits $100M to SVP’s Distressed Debt Fund VI 

The Kentucky County Employees’ Retirement System (CERS) approved a $100 million allocation to Strategic Value Partners’ (SVP) Strategic Value Special Situations Fund VI, a distressed debt vehicle targeting opportunities across North America and Europe. When fully funded from cash, the commitment would represent about 0.5% of total plan assets. 

According to investment staff, SVP has delivered strong and consistent performance across its prior drawdown funds dating back to 2008. The strategy focuses on building concentrated positions in 30 to 40 companies held over a multi-year horizon. 

CERS is already an SVP limited partner, with investments in Fund IV (2018), Fund V (2021), and the SH-130 toll road continuation vehicle (2024). Fund VI has also attracted significant backing from other public pensions, including $50 million from Ohiio Police & Fire, $250 million from the Connecticut Retirement Plans and Trust Funds, and $75 million from the Ohio School Employees Retirement System. 

The investment is part of CERS’ broader $596 million private equity program, which has been actively expanding. Earlier this year, the pension committed $70 million to Arctos Partners’ Arctos American Football Fund, underscoring its appetite for both distressed opportunities and sports-related private equity strategies. 

Connect Money will spotlight rising stars who have made a valuable contribution to the alternative investment industry. Based on your nomination, we will recognize professionals who have significantly influenced both the workplace and community. The deadline is September 10. Click here to submit your nominations.