By Muskan Arora
The $18.2
billion Ohio Police & Fire Pension Fund approved the final $100 million
private credit and $75 million real estate commitments for this year, amid
announcing investment plans for the next year.
OP&F has
set aside up to $265 million for its private credit sleeve with approximately
4 to 5 commitments with individual ticket size being at $50 million. The system
has also allocated $25 million - $50 million for its private credit
co-investment program for 2024-25.
For its real
estate sleeve, the system has earmarked up to $275 million for its next year’s
commitments.
Recent
private credit commitments
Within its private credit sleeve, OP&F has committed up
to $50 million to OHA Senior Private
Lending Fund, which invests in loans to upper middle-market barrowers in
diversified industries, including health care, software, industry and
financials, primarily in the U.S.
Another commitment of up to $50 million was made to
Fortress Lending Fund IV, who focuses on a broad range of industries primarily
in North America.
These were the last two commitments within the
system’s private credit sleeve for the year 2023-24, bringing the total number
of commitments to $350 million.
The system allocates 3.2% or $575 million to its
private credit sleeve against an interim target of 4%, as of June 2024. The long-term
target is 5% which the system plans to reach by 2028.
Recent real estate commitments
For its real estate sleeve, the system committed $75
million to Fairfield Value-Add Multi-Family Fund IV, which focuses on
multi-family opportunities in the U.S.
This is the third commitment made within the real
estate sleeve in 2023-24, bringing the total number of commitments to $225
million.
The system allocates 10.1% or $1.8 billion to its real estate sleeve against a target of 12%, as of June 2024.
