Texas Teacher Retirement System is betting on the future of the leveraged loan market, anchoring a new investment fund platform managed by CIFC.
The fund platform, called Texas Debt Capital, will be able to buy up to $ 2 billion in loans in the United States and Europe. An announcement released on Monday said TRS “had committed significant equity” to the fund, but did not disclose exact figures.
The fund will invest in senior secured loans, including those issued by TRS private equity partners, according to the announcement. Investors will use forward, non-market leverage to enhance returns. This strategy also includes the issuance of secured loan bonds.
TRS, which managed $ 193.1 billion in assets as of June 30, is a prolific private investor. The pension fund also has a long history of building strategic partnerships with investment managers, including collaborations with KKR and Apollo Global Management dating back to 2011.
A spokesperson for TRS said the relationship between CIFC and TRS is new.
“TRS is already one of the main private investors in the country, [so] the creation of this platform to invest in sponsored loans represents an exciting strategic innovation for [us]”said Jase Auby, Director of Investments at TRS.” We are delighted to leverage CIFC’s track record as a leading alternative credit manager to gain long-term exposure to this attractive total return. “
A subsidiary of CIFC Asset Management – a credit specialist with more than $ 33 billion under management – will act as general partner and manager of the fund.
“We are honored that TRS has chosen CIFC for this innovative mandate and are excited about the opportunity to develop a unique partnership,” said Steve Vaccaro, CEO and Chief Investment Officer at CIFC.