OP&F Investment Notes, June 2020

Notes from the Investment Committee meeting on June 16, 2020.

Portfolio value:

The OP&F portfolio was valued at $15.1 billion as of 6/16.

OP&F approves private credit recommendation

The Board of Trustees approved a commitment of up to $50 million to Crayhill Principal Strategies Fund II. Crayhill is focused on niche private credit and asset-based investing. The commitment to OP&F’s private credit portfolio is the first in 2020. As of May 2020, the private credit portfolio at OP&F is valued at $434 million, or 2.9 percent of the total portfolio. The long-term target for private credit is 5.0 percent. This is OP&F’s first investment with Crayhill.

Private Credit investment plan approved for 2020-21

The annual Private Credit Investment Plan was approved by the Board at its June meeting, and will cover investment activity in the asset class from July 1, 2020 through June 30, 2021.

OP&F staff and general investment consultant, Wilshire Associates recommended using a four-year time horizon to reach the 5.0 percent target allocation. This pacing model calls for a target level of commitments in a range of $225 to $275 million annually, with a typical commitment per fund of $50 million. The targeted range may either be exceeded or not reached depending on the investment environment and the availability of suitable investment opportunities. OP&F will implement the plan by targeting corporate middle market direct lending and other senior credit strategies.

Posted 6/18/2020