Teacher Retirement System of Texas and CIFC Create Fund Platform to Invest in Senior Secured Loans

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AUSTIN, Texas and NEW YORK – (COMMERCIAL THREAD) – Teacher Retirement System of Texas (“TRS”) and CIFC Asset Management LLC (“CIFC”) announced the creation of a new leveraged investment fund platform known as Texas Debt Capital LP (“TDC”). A subsidiary of CIFC is the general partner and investment manager of TDC. TRS is the principal sponsor of the investor and has committed significant capital to the fund. The fund will initially provide up to $ 2 billion in loan purchasing capacity in the United States and Europe.

TDC will invest in high quality senior secured loans, including loans issued by TRS private equity partners and other sponsors. Yields are expected to be enhanced by forward, non-market leverage, including the opportunistic issuance of secured loan bonds (“CLOs”).

Jase Auby, Director of Investments at TRS, said: “As TRS is already one of the country’s leading private equity investors, the creation of this platform to invest in sponsored loans represents an exciting strategic innovation for TRS. We are delighted to leverage CIFC’s track record as a premier alternative credit manager to gain long-term exposure to this attractive total return.

Steve Vaccaro, CEO and Chief Investment Officer of CIFC, added: “We are honored by TRS’s selection of the CIFC for this innovative mandate and are delighted with the opportunity to develop a unique partnership. This recognition of one of the largest public pension plans in the country marks a turning point in the continued evolution of the CIFC and testifies to the strength of our platform and the expertise of our team. We look forward to a successful long-term partnership and to bringing value to TRS and its beneficiaries. ”

About TRS

The Texas Teachers’ Pension System is a public pension plan providing retirement benefits and related benefits to those employed by public schools, colleges, and universities supported by the State of Texas. The main mission of the system is to make a positive difference in the lives of educators in Texas by investing and prudently managing the assets of the trust and providing benefits to members. Almost 1.7 million public and higher education employees and retirees participate in the system. As of June 30, 2021, TRS managed $ 193.1 billion in assets, making TRS the 6th largest public pension fund in America by both participants and assets. At the same time, TRS’s private equity portfolio is estimated at $ 31.5 billion. For more information, visit www.trs.texas.gov.

About CIFC

Founded in 2005, CIFC Asset Management LLC is a global credit specialist providing investment solutions through CLOs, corporate, structured and opportunistic credit strategies, designed to provide investors with consistently attractive risk-adjusted returns. . The company leverages its fundamental research and extensive experience investing in a wide variety of credit cycles and interest rate environments to target investment opportunities that generate alpha while preserving the capital of the investor. CIFC currently manages more than $ 33 billion in assets and employs more than 130 professionals in the United States and Europe. For more information, visit www.cifc.com.


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