Rhode Island Investment Council committed to private equity and credit funds from Odyssey Investment Partners and Benefit Street Partners at its October meeting, according to the system’s director of communications, Evan England.
The system invested up to $50 million to Odyssey Investment Partners Fund VI. Odyssey’s sixth fund has a target of $2.75 billion on a $3.25 billion hard cap, according to presentation documents.
The fund invests in industrial companies and middle-market business services with an Ebitda between $20 million and $100 million.
Part of Odyssey’s investment strategy is to find market trends to target certain sectors and to grow the value of its portfolio companies, presentation documents show.
Odyssey Investment Partners declined to comment for this story.
“Odyssey was a continuation of our effort [to] increase and diversify our investments in PE for the purpose of growth,” England said in an email.
In April, England said that Rhode Island planned to make multiple commitments a year in the next few years, Active LPs previously reported. It plans to invest $20 million to $60 million to private equity funds.
Rhode Island also committed $40 million to Benefit Street Partners’ Senior Opportunities Fund II. The private credit fund focuses on senior debt and has invested more than $10 billion in senior secured credit investments since 2010, according to presentation documents. Target size for the fund wasn’t available.
Senior Opportunities Fund II targets companies with $20 million to $60 million in Ebitda and loan-to-values between 40 percent and 60 percent, according to a memo from Thomas Lynch, senior managing director at Cliffwater.
“Benefit Street helps meet our strategic allocation to private credit, which we use to drive income,” England said.
Benefit Street Partners declined to comment.
Private equity sits at 6.7 percent on an 11.25 percent target and opportunistic private credit makes up 0.6 percent of Rhode Island’s portfolio, targeting 1.5 percent, according to an asset allocation review document.
The system also chose Wilshire as its environmental, social and governance consultant, England confirmed.
According to Rhode Island’s request for proposal, the consultant will “support the SIC investment team in developing a strategy for adoption of environmental, social & governance integration in the investment policies and procedures relating to private assets (equity, credit, real estate and infrastructure).”
Action Item: Check out Rhode Island’s investment material here.