Notes from the Investment Committee meeting on Sept. 25
Portfolio value:The OP&F portfolio was $15.75 billion as of 9/24.
Commitment to direct lending fund approved
OP&F’s Board of Trustees approved a commitment of up to $50 million to the Blackrock Direct Lending Fund IX at its Sept. 25 meeting. The Blackrock fund specializes in direct lending to middle market companies.The commitment falls into OP&F’s private credit portfolio, which is currently valued at $370 million, or 2.4 percent of the total portfolio. The target for private credit is 5.0 percent of the total portfolio.
Real estate commitment approved
The Board also approved a commitment of up to $50 million to Black Creek Industrial Fund during its Sept. 25 meeting. Black Creek will seek to acquire and develop core and value-add industrial assets primarily in top-tier distribution markets.
The commitment to Black Creek is the first for the tactical portion of the OP&F real estate portfolio in 2019. The real estate portfolio is valued at $1.8 billion, or 11.5 percent of the total OP&F investment portfolio. The target is 12 percent for real estate.
Private markets commitment approved
Also approved at the OP&F Board’s Sept. 25 meeting was a commitment of up to $20 million to Cortec Group Fund VII. Cortec targets control investments in the lower middle market within North America. The 2019 investment plan for private markets calls for six recommendations of up to $20 each. The Cortec VII commitment is the fifth commitment of the year, totaling approximately $100 million. The private markets portfolio at OP&F is valued at $1.3 billion, or 8.5 percent of the total portfolio. The target for private markets is 8.0 percent.