By Muskan Arora
The $19.5B Ohio Police and Fire Pension Fund has earmarked a pacing plan of up to $290M for its private credit sleeve for FY26.
The pacing plan ranges from $240M to $290M with an aim of making approximately five to six commitments. The ticket size for each commitment would be up to $50M.
Further, there is also a possibility for multiple co-investment vehicles for the year, which would account for 10% of its private credit sleeve, said David Graham, communications director at the plan, in an email.
As of June 17, the pension fund has allocated 3.4% or $660.7M to its private credit sleeve against a target allocation of 5%. Ohio P&F aims to reach its target allocation by 2028.
As the pension fund unveils next year’s plan, it makes a final allocation of up to $50M to Ares Pathfinder Core Fund for this year, which brings up the total allocation to $200M to private credit in FY25.
The fund will focus on specialty finance and real assets opportunities.
“Staff and advisor Aksia noted the well-staffed team at Ares, along with its long history and broad investment mandate as advantages for making the selection,” said Graham.
The pension fund returned 3.37% for the quarter outperforming the median return by more than 3%, as per Wilshire Associates, investment consultant for the plan. For the one-year end of March 31, the pension plan had a gross return of 10.61%.
