MainePERS Backs Infrastructure and Direct Lending Funds

By David G. Barry

Maine Public Employees Retirement System (MainePERS) has committed to funds focused on infrastructure and direct lending.
The board of the $18.2 billion pension plan approved up to $100 million to Stonepeak Infrastructure Partners’ Stonepeak Core Fund and up to $125 million to Angelo, Gordon & Co.’s AG Direct Lending Fund V, Chief Investment Officer James Bennett confirmed to Markets Group.
MainePERS has invested $465 million in five prior Stonepeak vehicles – including two co-investment funds – since 2015. In 2020, it approved $125 million to Stonepeak Infrastructure Partners IV. MainePERS is not yet listing a return for that fund, but the other four funds have interim net internal rate of returns ranging from 14.2% to 23.8%. Infrastructure currently accounts for 10.5% of the fund, just above the system’s 10% allocation target for the sector.
Over the past four years, the system has invested $372 million in 22 Angelo Gordon vehicles – including a series of $5 million investments in so-called participation agreements. The net interim IRRs for the funds range from 6.5% to 19.9%. MainePERS is slightly underweight to alternative credit – which these funds fall into. It is at 6.7% and has a 7.5% target.