Vermont Pension Commission Commits $145M to Private Markets Funds
The $8.2 billion Vermont Pension Investment Commission approved $145 million in commitments to three private markets funds as it works to bring its credit and private equity portfolios closer to their strategic allocation targets.
Trustees unanimously approved the investments with assistance from investment consultant RVK. The commitments span European direct lending, opportunistic credit and private equity secondaries.
Pemberton Asset Management received the largest allocation: $75 million for its Mid-Market Debt Evergreen Fund. The strategy invests in senior secured loans to middle-market companies across Western Europe and the United Kingdom.
Pemberton targets a return of 13% to 15% using 1.0 times leverage. Its portfolio spans industries including health care, pharmaceuticals, business services, consumer services and technology.
Hayfin Capital Management received $50 million for its Tactical Solutions Evergreen Fund, which is targeting $2.5 billion. The fund invests across primary lending, secondary and opportunistic credit, real assets and structured credit in Western Europe and North America.
The commission also committed $20 million to Cambridge Associates Secondaries Aggregation Vehicle II. Launched in 2022, the fund primarily acquires limited partner interests, with smaller allocations to direct secondaries and general partner-led transactions.
Vermont’s pension system returned more than 14.1% for the fiscal year ended June 30. Private equity gained 8.9%, while private debt returned 6.7%.
RVK recommended $235 million of total allocations across direct lending and other private credit strategies, which would move the portfolio from 10% toward its 11% target.
Trustees are expected to review potential infrastructure commitments to Copenhagen Infrastructure Fund VI and Igneo European Diversified Infrastructure Fund IV at their next meeting.
Connect Money is spotlighting rising stars who have made a valuable contribution to the alternative investments industry. Based on your nomination, we will recognize professionals who have significantly influenced both the workplace and community. The deadline is September 9. Click here to submit your nominations and help us highlight the next generation of leaders.
