Louisiana Teachers’ Fund Adds $250M to Credit, Energy Strategies

The Louisiana Teachers’ Retirement System is broadening its credit strategies with a shortlist and allocation this month.

The investment board that manages the nearly $25 billion fund approved multi-asset credit managers: Apollo Global Management, Ares Management, Brigade Capital Management and HPS Investment Partners.

At the May 4 meeting, trustees committed $200 million to the Ares Senior Direct Lending Strategy Fund III. Ares Management’s US Direct Lending and Alternative Credit strategies recently acted as lead arranger and junior agent for $3 billion in asset-backed and operating company financing for the acquisition of Merchants Fleet, a Hooksett, NH-based provider of fleet management services across North America.

LS Power Equity Partners V received a $50 million commitment. The fund is managed by LS Power Equity Advisors, which held the close of its previous flagship fund in 2018. The strategy buys operating power generation and related energy infrastructure assets.