Connecticut Commits $1.1B in Private Credit, Real Estate Investments

Connecticut State Treasurer Erick Russell announced at the state’s first Investment Advisory Council meeting of 2024, held January 10, more than $1.1 billion in private credit and real estate investment commitments for the Connecticut Retirement Plans and Trust Funds. Russell is the principal fiduciary for the six pension funds and nine trust funds serving more than 200,000 people.

Approximately $653 million was earmarked for private credit investments. This included $125 million to the ICG North America Credit Partners Fund III and $200 million to the ICG Liquid Credit Strategies, including the ICG Global Loan Fund and the ICG Global Total Credit Fund.

Russell also committed 300 million euros ($328 million) to two European credit investment funds. Half of that will be invested in the ICG Europe Mid-Market Fund II SCSp, with the remaining 150 million euros going to a customized co-investment program.

“I’m pleased to kick off 2024 with this slate of investment commitments,” Russell, who took office in January 2023, said in a statement. “These European opportunities, in particular, represent prudent diversification of our private credit portfolio. I’m grateful to the IAC for their collaboration and input in these decisions.”

In the state’s real estate portfolio, Russell committed $125 million to the Penzance DC Real Estate Fund III, $200 million to the Stonepeak Infrastructure Fund V and $125 million to Homestead Capital USA Farmland Fund IV.

Russell noted that the investment moves were based on input and feedback he received during the November 2023 IAC meeting.

At the January meeting, the committee also received updates from Russell’s investment team, including the positioning and outlook of the pension fund’s $24.2 billion global equity portfolio, the public markets currency overlay strategy, a review of the short-term investment fund and a presentation of the pension fund’s rebalancing process.