Teacher Retirement System of Texas (TRS) and CIFC Asset Management created a new leveraged loan investment fund platform known as Texas Debt Capital (TDC). A CIFC affiliate will be 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 $2 billion loan purchasing capacity in U.S. and Europe.
TDC will invest in senior secured loans, including loans issued by TRS’ 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 collateralized loan obligations.
“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,” Jase Auby, chief investment officer at Teacher Retirement System of Texas, said. “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.”
“We are honored TRS selected CIFC for this innovative mandate and are excited for the opportunity to develop a unique partnership,” Steve Vaccaro, CEO and chief investment officer of CIFC Asset Management, said. “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.”
