2021-05-27-RB-min - Laserfiche WebLink

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David Schwartz,Andrew Gorgon,and Kara Herskowitz from Ares presented for the Direct Lending interview. Ares is one of the largest U.S. direct lending firms. Currently hold over$207b in AUM. They have$48b of direct lending gross originations in the last three years with average annual losses of just 0.001%. Ares feels they are the strongest non-sponsored lender in the U.S. industry. A leader in leveraged finance and private credit. Strong track record for compelling risk adjusted returns through market cycles. Part of their strategy is to keep funding the growth of their highest performing portfolio companies. Ares will review roughly 1,600 deals per year,yet only select about 4%for lending purposes. The current lending fund Ares has offer has returned 13.7%as of 3/31/21. David Schwartz wrapped up the interview at 9:40 am. Sean Duff and Zia Uddinn presented for Monroe on the Senior Lending Fund interview at 9:45 am. Sean mentioned the new fund with take on a total of$1.5b. A four year investment,with a seven year life cycle is the parameter. This fund will offer a net levered return in the 9-12%zone,while unlevered target will be 6-9%zone. The portfolio will be for companies in the U.S.that are well established. Deals will included both sponsored and unsponsored firms. Monroe would like to raise up to$100m and have contractual lengths of the loans to be 4-5 years. It will be composed of senior corporate loans and opportunistic private credit. Zia Uddinn wrapped up the interview at 10:00 am. The Board spent a few minutes discussing each potential suiter for their Direct Lending manager. Alan Fields felt Golub and Monroe are the strong candidates. Both are currently under contract with Lexington. Fred Weiss feels the same way,and added it will be an attractive asset class to enter. With rates going up over the next few years, this fund could suit our portfolio very nicely. Meketa offered to have the Board revisit how to approach this fund monetarily and make a decision in June. Fossil Fuel remains at 2.4%as of 03/31/2021. New report could be available at the June Board meeting. Robert Cunha motioned to adjourn the meeting at 10:15 am,which was seconded by Joseph Foley,and unanimously approved by Alan Fields,Carolyn Kosnoff,and Fred Weiss. The next Retirement Board meeting will be held via Zoom on Thursday,June 24,2021 at 8:30 am. Angelo Gordon and White Oak will present for review. Robert Cunha,Chairman Alan Fields,Appointed Member Carolyn Kosnoff,Ex Officio Member Joseph Foley,Elected Member Frederick Weiss,Appointed Member