Income

Neuberger Berman is a private, independent, employee-owned investment management firm. The firm manages equities, fixed income, private equity and hedge fund portfolios for global institutional investors, advisors and high-net-worth individuals and its headquarters in New York City.

Website: https://www.nb.com/en/global/home

Investment Approach Initial Investment Role in the Portfolio
Fundamentally, the strategy seeks to exploit the behavioral bias that investors overpay for insurance. It does so by writing (selling) at the money put options (insurance) and collecting a yield (implied vol. premium) for doing so. As such the strategy will seek to earn returns by collecting this premium over time as opposed to capital appreciation. The premium will fluctuate based on implied volatility versus realized volatility.
  • $175,000,000 to Neuberger Berman S&P 500 Index PutWrite in February 2020. Targets allocation of 2% of total plan assets.
 The investment is part of the 12% ERSRI policy allocation to income strategies.

Wellington Management Company is a private, independent investment management firm with client assets under management totaling over US$1 trillion based in Boston, United States.

Website: https://www.wellington.com/en/

Investment Approach Initial Investment Role in the Portfolio
The strategy will seek to take advantage of investment opportunities across the emerging markets fixed income spectrum, including hard and local currency‐denominated sovereign, quasi‐sovereign, and corporate debt, and their derivatives.
  • $160,000,000 to Wellington Blended Opportunistic Emerging Markets Debt fund in April and May of 2020. Targets allocation of 2% of total plan assets.
 The investment is part of the 12% ERSRI policy allocation to income strategies.

Loomis Sayles was founded in 1926 and is headquartered in Boston with offices in San Francisco, Detroit, London, and Singapore. The firm holds $264.4 billion in AUM and 75% of investment professionals dedicated to research and trading.

Website: https://www.loomissayles.com/

Investment Approach Initial Investment Role in the Portfolio
This portfolio invests in high yield credit and bank loans seeking the bed risk-adjusted return potential over a full market cycle.
  • $155,000,000 approximated investment ($90 million of securities transferred in October, 2018; $60 million of cash proceeds from liquidation of terminated mandate transferred October through December, 2018) to bank loans/short-duration high yield strategy. Targets one-half of Liquid Credit target allocation of 2.8% of total plan assets.
 The investment is part of the 12% ERSRI policy allocation to income strategies.

PIMCO was founded in Newport Beach, CA in 1971. In 2000, PIMCO was acquired by Allianz SE, a large global financial services company based in Germany. PIMCO operates as a separate and autonomous subsidiary of Allianz. The subsidiary has 13 offices globally, with five in Europe, four in Asia-Pacific and four in the Americas. At the time of investment, the subsidiary had 2,343 employees, including 690 investment professionals.

Website: http://www.pimco.com

Investment Approach Initial Investment Role in the Portfolio
The portfolio invests primarily in non-investment-grade bank loans and short-duration high-yield securities. PIMCO puts top priority on identifying and avoiding credits with weakening fundamentals to avoid the downside risk in credit. The manager seeks to balance yield spread and price against a goal of preserving principal. PIMCO puts a particular emphasis on investing in securities with high asset coverage and attractive credit fundamentals.
  • $200,000,000 to bank loans/short-duration high yield strategy in May 2013. Targets one-half of Liquid Credit target allocation of 2.8% of total plan assets.
 The investment is part of the 12% ERSRI policy allocation to income strategies.

Atalaya is an alternative investment advisory firm focusing primarily on making private credit and special opportunity investments.

Website: https://www.atalayacap.com/

Investment Approach Initial Investment Role in the Portfolio
Atalaya primarily originates short duration senior secured loans to specialty finance borrowers in the consumer, commercial, and real estate sectors. Atalaya may also opportunistically purchase performing loans in these sectors.
  • $30,000,000 commitment to Atalaya Asset Income Fund V in 2021
 The investment is part of the 12% ERSRI policy allocation to income strategies.

Benefit Street Partners ("BSP") is a credit-focused alternative asset management firm with approximately $27 billion in assets under management. BSP is a wholly owned subsidiary of Franklin Resources, Inc. that, together with its various subsidiaries, operates as Franklin Templeton. The BSP platform was established in 2008 and firm's headquarters are based in New York City.

Website: http://benefitstreetpartners.com/

Investment Approach Initial Investment Role in the Portfolio
The Fund seeks to invest in senior secured credit to U.S. middle market companies with $20 to $100 million in EBITDA and loan-to-values between 40-60%. BSP may opportunistically invest in larger syndicated credits if the Firm sees dislocation or a strong relative value opportunity.
  • $40,000,000 commitment to Benefit Street Partners Senior Opportunities Fund II in 2019
 The investment is part of the 12% ERSRI policy allocation to income strategies.

Owl Rock Capital Partners was founded in 2016 and is headquartered in New York City. The firm makes middle market loans to U.S. only private equity sponsor-backed companies. Owl Rock employs 22 investment professionals.

Website: https://owlrock.com/

Investment Approach Initial Investment Role in the Portfolio
Owl Rock Capital Corporation invests in senior secured or unsecured loans, subordinated loans or mezzanine loans and, to a lesser extent, equity-related securities including warrants, preferred stock and similar forms of senior equity, which may or may not be convertible into a portfolio company’s common equity.
  • $50,000,000 Commitment to Owl Rock Corporation in 2018
  • $50,000,000 Commitment to Owl Rock Capital Corporation III in 2020
 The investment is part of the 12% ERSRI policy allocation to income strategies.

Shamrock Capital Advisors is a Los Angeles based investment firm with a long history of investing in the media, entertainment and communications sectors.

Website: https://shamrockcap.com/

Investment Approach Initial Investment Role in the Portfolio
The Fund will seek to acquire a diversified portfolio of entertainment IP assets in film, television shows, music publishing catalogs, video games, and other types of entertainment content. Entertainment IP assets may include a range of structures, such as rights to participate in cash flows (“participation rights”), direct equity and equity-related interests in the underlying content, royalty streams, or secondary debt in structured finance vehicles. The Fund will target entertainment IP assets that have passed their initial release window and typically have predictable cash flows. The Fund will seek to generate long-term cash flows through its portfolio investments through distribution fee revenues and royalty streams.
  • $30,000,000 commitment Shamrock IP Content Fund II
 The investment is part of the 12% ERSRI policy allocation to income strategies.

Virgo was founded in 2009 as an opportunistic, private investment firm in Redwood Shores, California. The firm's 18 professionals operate in the middle-market looking to identify opportunistic credit investments with equity-like returns. The firm has $755mm in AUM with other offices in Summit, NJ and Atlanta, GA.

Website: http://www.virgo-llc.com/

Investment Approach Initial Investment Role in the Portfolio
The firm targets capital dislocation "market seams" in niche industrials, media, healthcare, specialty finance/real estate, and middle-market credit and distressed. Investments are highly structured and combine both credit and equity components, with credit investments collateralized by underlying assets or loans and equity invested into the operating or management companies.
  • $50,000,000 Commitment to Virgo Societas Partnership IV (Offshore)
  • $20,000,000 commitment to Zephyrus Aviation Partners I in January 2019
 The investment is part of the 12% ERSRI policy allocation to income strategies.

CapitalSpring is a specialized alternative asset manager focused on lending and investing in the franchise sector. The firm was founded in 2005 and is headquartered in New York, NY.

Website: http://www.capitalspring.com/

Investment Approach Initial Investment Role in the Portfolio
CapitalSpring focuses on branded quick service and fast casual franchise restaurants. CapitalSpring primarily provides capital in the form of high-yielding senior secured debt, subordinated debt, preferred equity, and to a lesser extent, non-current-pay preferred/common equity investments, to borrowers with financing needs that exceed a conventional low-priced first lien bank loan.
  • $30,000,000 commitment to Capital Spring Investment Partners Fund V, LP in 2016
  • $40,000,000 commitment to Capital Spring Investment Partners Fund VI in 2020
 The investment is part of the 12% ERSRI policy allocation to income strategies.

The manager was formed in 2007 and is headquartered in New York, NY. At the time of investment, the firm had 75 employees, including 45 investment professionals.

Website: http://www.garrisoninv.com/

Investment Approach Initial Investment Role in the Portfolio
The fund's strategy is to pursue middle-market credit and asset-based investments in stressed, distressed or undervalued private credit assets. These investments will include commercial and industrial loans, consumer credits, and credits backed by certain tangible assets such as real estate.
  • $30,000,000 commitment to Garrison Opportunity Fund IV in 2015
 The investment is part of the 12% ERSRI policy allocation to income strategies.

Summit Partners is a global alternative asset investment firm managing investment vehicles focused primarily on growth equity, venture capital and fixed income. Summit Partners was founded in 1984 and at time of last investment, employed more than 90 investment professionals across three offices in Boston, MA, Menlo Park, CA, and London.

Website: http://www.summitpartners.com/

Investment Approach Initial Investment Role in the Portfolio
The funds seek to achieve returns primarily though originating private corporate debt. They may also make opportunistic purchases of syndicated bank loans and high yield bonds when attractive risk-return pricing may be achieved in these markets. While investments may be senior or subordinated, the majority of investments are anticipated to be secured by a first- or second-lien interest in the assets of the borrower and to require the borrower to maintain certain operating financial covenants.
  • $20,000,000 to Summit Partners Credit Fund in 2011
  • $25,000,000 to Summit Partners Credit Fund II in 2014
 The investment is part of the 12% ERSRI policy allocation to income strategies.