Teacher Retirement System of Texas Forms Senior Secured Lending Platform with CIFC

Posted on 10/04/2021

Teacher Retirement System of Texas (TRS) and CIFC Asset Management LLC (CIFC) formed a new leveraged loan investment fund platform known as Texas Debt Capital LP (TDC). A CIFC affiliate is 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 US$ 2 billion loan purchasing capacity in U.S. and Europe.

TDC will invest in high quality senior secured loans, including loans issued by TRS’s 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 (CLOs).

The Teacher Retirement System of Texas is a major private equity investor and this look at investing in sponsored loans could help the pension find more alpha opportunities.

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