The Virginia Retirement System (VRS) announced several alternative investment hires in March, including a commitment to quant manager Man AHL within its risk-based investments portfolio, which received a $300 million commitment.

VRS allocated $1.9 billion across credit, real assets and private equity, according to a recent transaction report from the $100 billion retirement fund.

The fund committed $800 million to credit strategies, including distressed and net lease sale backs.

Two Ares Management funds were selected for the credit portfolio: $50 million to Ares Capital Europe VI and $250 million to Ares Pathfinder II. Ares Capital is focused on scaled debt capital provided to European middle-market companies. Ares Pathfinder is an alternative credit fund investing in performing assets that have predictable cash flows and are directly originated by Ares.

In the distressed credit space, a $150 million commitment was made to Oaktree Capital’s Oaktree Opportunities Fund XII, which saw over $16 billion raised in its predecessor fund in 2021. The strategy remains focused on both private and public corporate distressed debt opportunities.

The fourth credit commitment was to Oak Street Real Estate Capital VI, which seeks income generation through sale-leasebacks with investment grade tenants. VRS committed $250 million to the closed-end fund.

Two firms received capital in the real asset portfolio: Pantheon and Penwood Real Estate Investment Management. Pantheon will be handling $125 million in a separate account (VA – Pantheon Infrastructure III) investing in infrastructure funds. Penwood will handle $350 million in its Penwood Select Industrial Partners VII, LP, a fund focused on industrial real estate.