Vermont Pension Puts $125M to Work in Private Credit

The Vermont State Retirement Systems has allocated $125 million to two private credit funds.

Comvest Credit Partners, a new connection for the LP, got $75 million for its inaugural evergreen fund, a direct lending vehicle that began fundraising in April. During that time, Comvest closed its sixth flagship fund at $2 billion, above its $1.7 billion target.

Comvest typically invests in companies with EBITDA above $7.5 million.

Vermont also awarded Pantheon $50 million for its third opportunistic credit fund, which launched in December. The fund has not been given a target amount, although it is expected to outperform its predecessor’s $590 million raise.

The Vermont State Retirement Systems are made up of the Vermont Municipal Employees’ Retirement System, Vermont State Teachers’ Retirement System and the Vermont State Employees’ Retirement System.

Vermont State Retirement Systems’ allocation to private and alternative credit was 8.5% as of the end of 2023. Its target allocation is 10%.