Virginia makes $250m credit bet

The Virginia Retirement System, with $48 billion in assets, has committed $250 million to Beach Point Capital’s credit fund that will invest in distressed opportunities.

The investment comes from the pension’s credit strategies programme, which holds about $5.1 billion in investments. The credit programme has an actual allocation of 10.6 percent. Virginia’s private equity programme is valued at about $4 billion, with an actual allocation of 8.4 percent.

BPC Opportunities Fund’s target is not disclosed. Beach Point Capital has about $5 billion under management and specialises in high yield bonds, distressed debt, corporate loans and some other strategies. The firm was founded by Carol Goldsmith and Scott Klein.

Goldsmith and Klein both came from Post Advisory Group, where Goldsmith spent 15 years and served as senior investment officer, and Klein worked as a senior managing director for more than 12 years.

Last year, Virginia committed at least $300 million to private equity firms, including Hellman & Friedman and First Reserve.