The pension fund seeks to cut exposure to higher-yielding opportunistic credit and invest more in mainstream direct lending. — Bloomberg
FLORIDA: The Florida State Board of Administration (SBA) is looking to sell a bundle of private credit stakes worth as much as US$4bil in what would be one of the largest deals of its kind, according to people with knowledge of the matter.
The pension fund is looking to offload between US$3bil and US$4bil as it seeks to cut exposure to higher-yielding opportunistic credit and invest more in mainstream direct lending, said the people, who asked not to be identified discussing private matters.
The deal may end up being less than that range, and could be broken up into a series of sales where funds have the option of picking parts of the portfolio, the people said.
“The Florida SBA is always evaluating opportunities to reposition investments in the fund, and to shift between strategies when those decisions can optimise our portfolio and maximise return,” Emily Percival, the Florida SBA’s director of external affairs and special projects legal counsel, said in an emailed statement.
“As a policy matter, we do not publicly discuss the details of any potential transaction.”
The Florida SBA, which manages state pensions and other funds, aims to double its exposure to direct lending over the next few years, Trent Webster, a senior investment officer at the Florida SBA, said in an investment advisory council meeting in June.
Webster also said the fund planned to shed higher-yielding, opportunistic credit stakes.
At the meeting, Webster said the fund “directionally will be going more into the income-generating and more of what I like to call boring credit”. — Bloomberg
