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Teacher Retirement System Of Texas, CIFC Asset Management Create New Debt Investment Platform

Teacher Retirement System of Texas and CIFC Asset Management have partnered to create a new leveraged loan investment fund platform. 

Texas Debt Capital LP 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. TRS is the anchor investor limited partner and has committed significant equity to the fund, which will initially provide for up to $2 billion loan purchasing capacity in U.S. and Europe.

Jase Auby, Chief Investment Officer at TRS, said, “As TRS is already one of the nation’s top private equity investors, the creation of this platform to invest in sponsored loans represents an exciting strategic innovation for TRS.  We are pleased to leverage CIFC’s track record as a best-in-class alternative credit manager to gain long-term exposure to this attractive total return.”

Steve Vaccaro, Chief Executive Officer and Chief Investment Officer of CIFC, added, “We are honoured TRS selected CIFC for this innovative mandate and are excited for the opportunity to develop a unique partnership. This recognition from one of the nation’s largest public pension plans marks a pivotal point in CIFC’s continued evolution and is a testament to the strength of our platform and the expertise of our team. We look forward to a successful long-term partnership and to delivering value to TRS and its beneficiaries.”

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