Andrew Hedlund
The firm completed a stock offering, raising more than $30m.
The transaction comes as Fifth Street is in talks to sell management of its two business development companies.
The Texas investment firm will target corporate credit.
The pension has already committed $25m of the total to an Athyrium Capital healthcare investment fund sub-advised by Neuberger Berman.
The firm will invest in mid-market companies with both funds.
The deal adds yet another portfolio company to Dyal’s growing list of investments in alternative asset managers.
Oaktree Capital Management may be taking a risk launching its debut senior debt fund into a competitive marketplace, but its private sponsor clients have been clamouring for the firm to invest at the top of the capital structure.
The New York-based firm has added personnel who previously worked with two of its top executives.
The firm’s investments are all in senior secured loans, almost exclusively in the US.
The vehicle has been opened to investors from the firm’s distressed debt hedge fund, which was shuttered earlier this year.