Connecticut Treasurer Erick Russell has approved more than $1.7 billion in new investment commitments for the state pension fund system, with the bulk directed toward private equity and private credit funds.
Connecticut Treasurer Erick Russell has approved more than $1.7 billion in new investment commitments for the state pension fund system, with the bulk directed toward private equity and private credit funds.
The investments are part of the state’s effort to maintain long-term returns amid growing economic uncertainty, Russell said.
The commitments, approved during the May meeting of the state’s Investment Advisory Council (IAC), span private equity, private credit, real estate and infrastructure investments for the Connecticut Retirement Plans and Trust Funds (CRPTF), which support retirement benefits for state employees and teachers.
The largest private equity commitment was up to $300 million to JFL Equity Investors VII. The state also committed up to $200 million to LLCP Lower Middle Market Fund IV, up to 150 million euros to Inflexion Buyout Fund VII, and up to 70 million euros to Inflexion CT Co-Investment Limited Partnership.
In private credit, the state approved commitments of up to $175 million each to Hamilton Lane Credit Income Private Fund and CRPTF-Hamilton Lane Credit Sidecar, along with up to $250 million to JFL Credit Opportunities Fund II.
The pension system also committed up to $200 million to Smart Markets Fund in the real estate sector and approved up to $150 million in additional capital for infrastructure and natural resources fund AxInfra NA II.
The IAC shares responsibility for overseeing the state’s pension investment strategy and performance. Its members are appointed by labor unions representing teachers and state employees, legislative leaders and the governor.
The fund’s three-year rate of return is 10.05%, according to the treasurer’s office.
