Sergio Padilla
The partnership will include Cliffwater, FS Investments and Shenkman Capital Management.
It is estimated that the ABF universe totals about $19trn, versus about $1.7trn for direct lending.
If the SEC approves it, the success of this novel ETF could influence the creation of others like it
Mubadala and Apollo’s Athene will be strategic partners in the enterprise, which focuses on below investment-grade deals.
The pension fund has increased its debt allocation to 5.4 percent, which has netted a 7.8 percent return year-to-date.
Lenders are stretching terms amid an overabundance of dry power and too few deals.
The joint venture plans to lend to sponsor-backed tech companies in the lending space.
The partnership will provide $1bn of commercial property loans in the US.
The amount of commercial real estate debt will peak at $1.27trn in 2027, driven by lower borrowing costs from years’ past.
Including leverage and other capital, the fund has an investment capacity of up to $8bn in total commitments.