Oaktree’s latest distressed debt fund notches $16B, and more… (full long version)

Institutional Allocator News

Maine PERS Mulls Add’l $150M+ to TPG Angelo Gordon’s Twin Brook

The Maine Public Employees’ Retirement System (PERS) is considering increasing its maximum allocation to TPG Angelo Gordon’s direct lending group Twin Brook to up to $350M, for future deployment in continuation and co-investment vehicles. 

According to materials related to the pension’s upcoming board meeting on February 13, staff recommended approving the allocation as an exception to the pension’s $200M limit in co-investments with a single GP within a single asset class. As of January 31, Twin Brook represents the pension’s largest exposure in co-investments, accounting for $192M in total commitments made across 24 individual co-investments. General consultant Cambridge and alternatives consultant Cliffwater also concurred with the staff’s recommendation. 

As of September 30, 2024, the pension has deployed over $1B across 93 private market co-investments. Of the mix, 40 are co-investments in alternative credit, 34 are in private equity, 11 are in infrastructure, six are in real estate, and two are in natural resources. 

San Jose Police & Fire Commits $158M to Alts in December 2024 Deals

The City of San Jose Police and Fire Department Retirement made $158M in total commitments across seven funds in private equity, private credit, real estate, and venture capital, per its recently released January 22 board meeting materials.

In deals closed throughout December of last year, the California-based pension committed $58M to Kayne Anderson Core Real Estate and $24M to IPI Partners Fund III in real estate; $28M each to Arbour Lane Credit Opportunity Fund IV and Strategic Value Special Situations Fund VI in private credit; $5M to Lerer Hippeau IX and $3M to Friends & Family Capital III in venture capital; and $12M to Lime Rock New Energy II in private equity. Of the seven managers, IPI Partners, Kayne Anderson, and Friends & Family Capital represent new relationships for the pension. 

As of December 31, 2024, San Jose Police and Fire allocated approximately 9.2% of its total portfolio to buyouts against a 10% target; 4.7% to core real estate and 4.3% to growth real estate against 5% and 4% targets, respectively; 4.1% to private credit against a 4.5% target; and 2.2% to venture capital against a 4.5% target. 

Louisiana TRS Allocates $100M to PC, Reviews 4 Int’l Large-cap Equity Managers

The Teachers Retirement System (TRS) of Louisiana is allocating $100M to a Crescent Capital Group private credit fund and reviewing four managers within its international large-cap equity portfolio.

Per materials from the pension’s February 6 board meeting, private equity consultant Hamilton Lane planned to commit $100M to Crescent Private Credit Income on behalf of the TRS, with support from investment staff. The allocation represents a follow-on investment to the private credit manager after Louisiana TRS made a previous investment in Crescent Credit Solutions IX last year. 

The pension is also reviewing four international large-cap equity managers, namely Artisan Partners and Baillie Gifford within the growth sub-asset, and LSV Asset Management and MFS Institutional Advisors within value equity. General consultant Aon is assisting the pension with the annual manager reviews.

As of the latest Dakota data, Louisiana TRS administers a total portfolio of approximately $27B in pension assets. 

Monroe County Taps Hudson Edge in Int’l Equity Search

The Monroe County Employees Retirement System is making allocations of $17.4M each to a new international equity manager and an existing fixed income manager, per its December 2, 2024, board meeting minutes.

In the conclusion of its international equity manager search, the pension board approved a $17.4M investment in Hudson Edge Trinity Street International Fund, as recommended by general consultant AndCo. Additionally, the board also unanimously passed a motion to commit another $17.4M to Boyd Watterson, an existing manager within its fixed income portfolio, by year-end. Monroe County has invested in Boyd Watterson funds since at least 1990, per Dakota data. 

As of September 30, 2024, the Michigan-based pension managed approximately $264M in total plan assets.

British Columbia Investment Management Sells Hayfin Capital Stake

Canadian pension manager British Columbia Investment Management Company (BCI) announced that it divested its majority stake in London-based credit fund manager Hayfin Capital Management to Arctos Partners.

BCI earlier entered an agreement with the Dallas-based private equity platform in July of last year, with the sale finalized on February 7 after securing regulatory approvals. The $175B Canadian pension, which acquired the stake in Hayfin in 2017, said it saw a “compelling opportunity” to divest at a critical period when the private credit market has achieved “significant growth over the past seven years,” and that the deal would “allow the realization of investment returns for its clients.” The Hayfin management team led the selection and sales process to Arctos. BCI said it will continue to invest in key Hayfin funds as a limited partner. 

The transaction comes on the heels of BCI’s announcement that it made a cash offer to take BBGI Global Infrastructure private in a deal that would value the Luxembourg-based infrastructure firm at nearly £1.1B (~$1.3B), as reported by Dakota on February 7. BCI’s global private equity program oversees CAD 31B (~$21.6B) in assets, including from direct investments in European firms such as BMS Group, ZEDRA, Refresco, Compre Group, and Waterlogic. 

Wealth Allocator News

Gresham Partners Names Investment Director

Gresham Partners, an independent investment and wealth management firm based in Chicago, announced the appointment of Irene Zhang as its new investment director.

According to her LinkedIn profile, Zhang joined Gresham in 2020 as a senior investment analyst and became the firm’s investment officer in 2023. Since joining the firm, she has been involved in external manager evaluation and selection, developing investment strategies, and overseeing private market investments, including buyout, growth, and venture equity, and private real assets. She also sourced and led several investments in the firm’s private portfolio over the past two years. 

As the investment director, Zhang will become a senior member of Gresham’s private team and will be responsible for sourcing opportunities, conducting due diligence, and maintaining relationships with external managers. Zhang will be reporting directly to Sean Warrington, Gresham’s head of private investments.

Prior to joining Gresham, Zhang worked at PwC’s deals practice as an associate for three years, offering advisory services to firms when navigating accounting issues during M&A deals. 

Veris Wealth Appoints Advisory Chief, CIO

Veris Wealth Partners has promoted two of its partners to senior leadership positions, naming Jane Swan as chief advisory officer and Roraj Pradhananga as chief investment officer. 

Swan most recently served as head of advisory services and has been senior advisor and wealth manager for Veris since joining from Northern Trust in 2015. She brings over 29 years of industry experience to the role, specializing in sustainable investments. As advisory chief, she will lead the firm’s advisory committee, services platform, and advisor training, while working alongside the firm’s executive team, including CEO Stephanie Cohn Rupp and CIO Pradhananga, as well as other Veris partners.

Meanwhile, Pradhananga now fully takes on the CIO position after having shared the role with Veris co-founder Michael Lent since 2024. As CIO, Pradhananga will lead the investments team and coordinate with the firm’s advisory services in overseeing investment lifecycles. Veris said Lent is stepping back from the CIO role but will continue servicing clients.

Kestra’s Bluespring Acquires $560M KY RIA Reliant Wealth

Serial acquirer Bluespring Wealth Partners announced its acquisition of Reliant Wealth Planning, an RIA with $560M in assets under management headquartered in Louisville, KY.

Founded in 2017, the 13-member Reliant team is led by founding partners Shaun Chelf and Laura Clark. Reliant offers comprehensive wealth management, including retirement planning and retirement cash flow strategies, legacy and estate planning, and risk management, portfolio management, and due diligence, according to the firm’s website. 

Launched in 2019, Bluespring is the division of Kestra Financial devoted exclusively to acquiring experienced RIAs and wealth management firms. The acquisition of Reliant is its first since the July 2024 purchase of $1.35B RIA Rodgers & Associates Wealth Advisers of Lancaster, PA.

Merit Grows PA Presence with $233M Hershey Wealth Purchase

Merit Financial Advisors announced the acquisition of Hershey Wealth Advisors, located in Hershey, PA, in a deal that closed on February 7, adding $233M in client assets and establishing its fifth office in Pennsylvania.

Hershey Wealth Advisors is a six-member team led by Greg Richards, who will take on the role of wealth manager and partner under Merit. The firm, which was previously affiliated with Purshe Kaplan Sterling and Osaic, has over four decades of combined experience in providing wealth tailored financial planning solutions. 

Hershey is the first acquisition by Merit since recruiting David Wahler as its new vice president of strategic partnerships last month and its 33rd since receiving a minority investment from Wealth Partners Capital Group and HHGC’s Aspire Holdings platform in 2020. Neuberger Berman Capital Solutions joined them to back Merit with a minority investment in October 2023.

Emigrant Stakes $2.8B CT HNW Advisor Principle Wealth

Emigrant Partners announced that it has made a strategic minority investment in Madison, CT-based Principle Wealth Planners, an independent wealth manager overseeing $2.6B in client assets.

Principle Wealth Planners was founded in 2017 by Robert S. Paolucci and provides investment advisory services to high-net-worth individuals and their related trusts, estates, retirement plans, and corporations. The investment from Emigrant will allow the firm to expand its operations and establish a new flagship headquarters in Madison. Colchester Partners served as exclusive advisor to Principle on the transaction.

Emigrant has been active in the new year, recruiting Karl Ingram from Raymond James to lead identification of potential RIA investments and investing in Charlotte, NC-based RIA Novare Capital Management, which manages $1.8B in client assets. 

Former Truist Advisors Launch Aria Wealth Partners in Central VA

Financial advisors Paula Gunter and Caroline Borland have left Truist Wealth to establish fee-based RIA Aria Wealth Partners in Charlottesville, VA.

Aria Wealth Partners offers advisory services on wealth management, financial planning, and retirement planning. The firm’s client assets are primarily held by Charles Schwab for custodianship and brokerage services, according to its January 15 Form ADV filing.

Gunter and Borland have a combined three decades of experience in wealth management. Prior to her stint at Truist, Gunter was with BB&T Securities and Scott & Stringfellow. Borland served as vice president of equity finance sales at JPMorgan for nine years, according to her LinkedIn profile. She will serve as chief compliance officer and managing partner at Aria Wealth. According to its website, the team is joined by office and client administrator Peggy Ives.

LPL Scores $630M NJ Team from Corebridge

LPL Financial announced that advisors Carmen Lex, Jr. and his brother Chris Lex have joined its broker-dealer, RIA, and custodial plans, moving from AIG subsidiary Corebridge Financial, where they managed approximately $630M in advisory, brokerage, and retirement plan assets. 

With the move, the brothers have formed Lex Wealth Management, based in Marlton, NJ, and focusing on providing investment and portfolio management services, and retirement and brokerage planning. The Lex brothers have a combined 29 years of industry experience, specializing in the intricacies of the Public School Employees Retirement System (PSERS), according to Carmen’s LinkedIn profile.

Prior to their stint at Corebridge, Carmen and Chris were also affiliated with Corebridge forerunner Valic Financial Advisors, according to their BrokerCheck data.

Ameriprise Nabs $130M Metro Sacramento Advisor from LPL

Ameriprise Financial announced that former LPL advisor Jeff Impey, based in Roseville, CA, and reportedly managing $130M in client assets, has joined the firm.

Impey has 18 years of financial advisory experience with previous stints at Chase Investments and Morgan Stanley. Joining him in his jump to Ameriprise is client service associate Bettie Jelks. He will be reporting directly to Ameriprise complex director Kable Doria and regional vice president James Frisone.

The recruitment of Impey is Ameriprise’s second for the month, following Alabama-based Ronnie Sansom who moved from Edward Jones, where he managed $110M in client assets.

Private Fund News

Cresset Rebrands Private Funds Business as Peakline Partners

Cresset has rebranded its Cresset Partners private funds division as Peakline Partners in a move that sets up the private investments business to stand alone while continuing to serve its existing investor base, including clients of Cresset Wealth and other wealth advisors. 

Bill Rudnick and Chris Boehm will continue to lead the business as executive managing directors, and Peakline will retain its existing team of private market professionals. In a statement announcing the move, Rudnick and Boehm said Cresset’s private funds business has grown in scale to the point that “the time is right for Peakline to stand on its own as an independent private investments business.” They noted that in the past seven years, Peakline's funds have invested over $3.7B across real estate, private equity, private credit, venture capital, and other alternative asset classes. 

In November, Cresset received a $150M minority investment from serial wealth management investor Constellation Wealth Capital intended to fund ongoing expansion of Cresset’s platform, technology, and recruitment.

Oaktree Capital Closes Distressed Debt Fund at $16B

Oaktree Capital Management secured capital commitments totaling $16B at the final close of its latest distressed debt fund, including co-investment and affiliated vehicles.

Oaktree Opportunities Fund XII opened for subscription in February 2023 and as of February 2024 had secured $3.45B in capital commitments from 76 investors, an amended filing with the SEC showed. According to Dakota data, the Virginia Retirement System and the Connecticut Retirement Plans and Trust Funds are among the public pensions investing in the fund.

The asset manager marketed the fund across the US with the help of Oppenheimer & Co., Merrill Lynch, and Morgan Stanley. Outside the country, HMC ITJ, the Cayman branch of Banco BTG Pactual, Akela Capital, UBS, Singular Asset Management Administradora General de Fondos, Kyobo Securities, Nomura Securities, Spire Capital, and Kiatnakin Phatra Securities promoted Fund XII. Oaktree allocated an estimated $6.9M to commissions for the fundraise.

Fund XII is part of Oaktree's global opportunities strategy, falling under the opportunistic credit platform that primarily focuses on opportunistic liquid credits, rescue financings, debtor-in-possession financings, exit financings, loan portfolios, platforms, and opportunistic capital solutions. Previously called distressed debt, the platform allows Oaktree to lend money to cash-strapped companies, including those facing defaults. 

The fund aims to deliver attractive risk-adjusted-returns by capitalizing on public and private opportunities. So far, it has deployed more than $7B to a group of companies from various geographies, sectors and asset classes. Under its credit strategy, Oaktree manages $143B of assets, according to its website.

Report: BC Partners Targets €6B Raise for 12th Flagship Fund

British private equity firm BC Partners is aiming to raise between €5B and €6B (~$5.17B and $6.21B) for its 12th flagship fund, BC Partners Fund XII, Bloomberg reported February 10, citing people with knowledge of the matter.

The unnamed sources said the fund will be opened for subscription in the second quarter of 2025, with a first close targeted by the end of the year. They said the details of the fundraising are still being finalized and could change depending on market conditions. The fund's predecessor, BC Partners Fund XI, raised €6.9B (~$7.14B) when it closed in 2022.

According to Dakota data, previous iterations of BC Partners’ flagship fund has secured commitments from the California State Teachers' Retirement System, Teachers' Retirement System of the City of New York, State Teachers Retirement System of Ohio, Alfred P. Sloan Foundation and New York City Police Pension Fund.

Under its private equity strategy, BC Partners raised 11 successive funds that attracted over €30B (~$31.05B) in total capital commitments. The funds have carried out 128 investments in 19 countries, with a focus on businesses in Europe and North America with enterprise values surpassing €300M (~$310.4M).

Adamantem's Environmental Opportunities Fund Secures $221.1M at Close 

Adamantem Capital notified the SEC on February 7 that the Adamantem Capital Environmental Opportunities Fund reached its final close with $221.1M in capital commitments.

The Australian investment manager disclosed in a filing that the fundraising formally ended on January 20, 2025, about 18 months after opening sales of the fund in June 2023. New Private Markets reported on February 10 that the firm's first climate impact fund secured commitments from the Clean Energy Finance Corp., the Minderoo Foundation, NGS Super, Manulife, APG, and Carlyle’s Alpinvest unit, with two-thirds of commitments coming from outside of Australia.

Citing Adamantem Managing Director Rajiv Viswanathan, the report added that the fund is looking to complete 12 investments in growth equity or lower mid-market companies. So far, it has built a portfolio comprising sustainable packaging company Pac Trading, electric vehicle charger distributor Evnex, low-voltage monitoring technology provider Edge Zero, and building embedded networks designer and operator Microgrid.

Adamantem said it targets opportunities that generate outstanding financial returns while bringing about positive environmental, social and governance outcomes. Across its private equity and public market strategies, the firm manages approximately $1.6B of assets.

Junction Growth Investors Raises €115M for Maiden Fund

Junction Growth Investors secured €115M (~$119M) in capital commitments at the close of its first fund, an investment vehicle governed under Article 9 of the EU’s Sustainable Financial Disclosure Regulation, which covers financial products targeting sustainable investments. 

The sustainability-focused fund secured support from investors including Keeling Capital, BNP Paribas Fortis, Belgian Growth Fund, PMV, the owners of AB InBev and Umicore, and some technology entrepreneurs. Argo Law and Private CFO advised the venture capital firm on the fundraise. 

Through the fund, Junction Growth is hoping to continue its strategy of investing in opportunities in line with the Paris Agreement. Primarily, it targets Europe-based companies, providing growth equity and buyout capital with a typical allocation in the €5M to €10M (~$5.2M to $10.3M) range for each transaction. 

So far, the firm has built a portfolio that includes Ampacimon, ENEIDA.IO, Hysopt, Haulogy, Eturnity, Efficient Energy Technology and Solora BE.

Dakota News
news@dakota.com | https://www.dakota.com/
925 West Lancaster Ave., Suite 220, Bryn Mawr, PA 19010, USA
(610) 642-1481