LGPS Central, which has combined assets of around £55bn, has committed €125m (£106.8m) to PCP Corporate Credit Fund V.
The fund is managed by P Capital Partners (PCP), which is an alternative lender in the Northern European private credit market and has €3.5bn (£2.99bn) of assets under management across five funds.
The Local Government Pension Scheme pool’s investment in PCP’s fund represents the final commitment for LGPS Central’s Credit Partnership II, with over £1.1bn committed, across seven managers.
Mike Gillespie, investment director, private credit at LGPS Central, said: “PCP’s unique value proposition, bolstered by a successful track record, has captivated investors seeking diversification and stable returns.
“This appeal is driven by three key factors: a focus on non-sponsored deals in the Nordic and DACH regions, which bolsters portfolio resilience through diversification; a seasoned investment team with a decade-long track record, generating consistent and reliable results; and a meticulous risk management process led by a conservative and thoughtful management team, ensuring strong financial covenants and safeguarding investor capital.
“These attributes position PCP as an enticing investment opportunity, offering diversification, stability, and effective risk mitigation.”
In July, LGPS Central announced that it had committed $225m to Churchill Middle Market Senior Loan Fund, which represented its sixth investment from its Credit Partnership II Fund.
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