Teacher Retirement System of Texas (TRS) and CIFC Asset Management LLC (CIFC) have created a new leveraged loan investment fund platform known as Texas Debt Capital LP (TDC).
A CIFC affiliate is the general partner and investment manager of TDC. TRS is the anchor investor limited partner and has committed significant equity to the fund. The fund will initially provide for up to USD2 billion loan purchasing capacity in US and Europe.
TDC will invest in high quality senior secured loans, including loans issued by TRS’s private equity investment partners and other sponsors. Returns are expected to be enhanced by term and non-mark-to-market leverage, including through the opportunistic issuance of collateralised loan obligations (CLOs).
Jase Auby, Chief Investment Officer at TRS, says: “As TRS is already one of the nation’s top private equity investors, the creation of this platform to invest in sponsored loans represents an exciting strategic innovation for TRS. We are pleased to leverage CIFC’s track record as a best-in-class alternative credit manager to gain long-term exposure to this attractive total return.”
Steve Vaccaro, Chief Executive Officer and Chief Investment Officer of CIFC, adds: “We are honoured TRS selected CIFC for this innovative mandate and are excited for the opportunity to develop a unique partnership. This recognition from one of the nation’s largest public pension plans marks a pivotal point in CIFC’s continued evolution and is a testament to the strength of our platform and the expertise of our team. We look forward to a successful long-term partnership and to delivering value to TRS and its beneficiaries.”