Boston Retirement System Approves $40M in Direct Lending Commitments

The Boston Retirement System has approved $40 million in new private credit commitments, allocating capital to two direct lending funds as the roughly $9 billion public pension continues expanding its exposure to middle-market private debt.

At its July meeting, the board approved a $20 million commitment to Arcmont Direct Lending Fund V, managed by Arcmont Asset Management, and a second $20 million commitment to Sound Point U.S. Direct Lending Fund IV.

Arcmont’s strategy, launched in 2011, provides financing to companies across sectors including healthcare, financial services, industrials and consumer businesses. The portfolio primarily invests in first-lien senior secured and unitranche loans, while also maintaining flexibility to invest in second-lien debt, subordinated loans and select equity or warrant positions.

Sound Point’s strategy focuses on lending to core middle-market companies through first-lien, secured, floating-rate loans, targeting income generation and downside protection in a higher interest-rate environment.

The commitments form part of the pension system’s broader $115 million private debt allocation plan for 2026. The system’s private debt portfolio totaled approximately $389 million at the beginning of the year and generated a 9.7% return through the end of January.

Investment consultant NEPC led the manager search process.