Virginia Retirement Adds $200M to Credit Secondaries Fund
The Virginia Retirement System, which oversees $106 billion in assets, has added another credit fund to its already overweight portfolio.
Ares Credit Secondaries received a $200 million commitment, according to a report released at trustees’ December meeting. Ares Management manages the closed-end fund.
Ares is already a manager in the portfolio through a $300 million commitment to the Ares Capital Europe V fund, which offered exposure to flexible and scaled loan capital in European middle-market companies in 2020.
The decision follows a $630 million credit allocation in November, when officials discontinued a $140 million Schroders debt portfolio that included both securitized and direct real estate debt assets.
Three closed-end funds were selected in the credit program in August through October, including $150 million to Orchard Global EleganTree III; $230 million to Park Square Capital Partners V; and $250 million to Whitehorse Liquidity Partners VI.
Other funds in the credit program include PGIM Capital Partners VI, Oaktree Opportunities Fund XI, and Carlyle Diversified Credit.
The credit program totaled $15 billion and had an annualized return of 9.7%. as of the end of the third quarter.