2021-06-24-RB-min - Laserfiche WebLink

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Henry Jaung spoke of Monroe and Golub as the two Direct Lending managers we will be utilizing to make commitments. Based on the markets and future expectations, private debt could yield a target return to our portfolio in the area of 7-8%over time. A required vote to commit$10m was announced after the Board members felt that$5m be allocated to each Lender. Robert Cunha made a motion to allocate$5m to Monroe and $5m to Golub. The motion was seconded by Alan Fields, and unanimously approved by Fred Weiss, Carolyn Kosnoff, and Joseph Foley. The vote was 5-0 in favor of this allocation. William Cullinan and Francis Griffin presented the Angelo Gordon update 9:00 am. AG currently has $44b in Assets Under Management. Credit accounts for$29.5b, while Real Estate has$13.5b. They continue to invest in inefficient markets to generate consistent, absolute returns. Extensive research is what drives every investment decision. Francis mentioned Healthcare holdings are 31%of the entire holdings chart. He stated the Healthcare sector has many sectors with great exposure. Medical devices, dental practices, senior care, and dermatology to name a few. These sectors hardly default on any loans. Most did not even take the PPE Loans offered by the Federal Government. The other main holder is in Business services. They have 14%exposure rate in this industry, mostly in Logistics and Background screening. William Cullinan then concluded the review at 9:20 am. Paul Ahrens and Kyle Landau presented the White Oak update at 9:30 am. Paul briefed the Board on the firm. They currently have$7.3b in Assets Under Management utilizing a team of just over 465 professionals worldwide. Their net performance is estimated around 7%, slightly lower than expectations. White Oak was hoping for an 8% return to us. They have been slow in raising capital due to the Covid-19 Pandemic. Healthcare sector is where the firm is now focusing on heavily. Trying to stay away from Industrials. During the Pandemic,the use of oil and gas was slowed down. That sector had a tough stretch. One highlight mentioned was the acquisition of New Angus. It is a meat-packing plant that defaulted on loans and was taken over by White Oak. They focus on high-end cattle and sell products in 14+countries. Fifty percent of the company relies on retail sales,while the rest is comprised of food service industries and institutional settings. It has been a real asset to White Oak. Paul then concluded the review at 9:55 am. Fossil Fuel exposure at 2.4%. This remains the same from the last update on March 31, 2021. Robert Cunha motioned to adjourn the meeting at 10:00 am,which was seconded by Fred Weiss, and unanimously approved by Carolyn Kosnoff,Joseph Foley, and Alan Fields. The next Retirement Board meeting will be held via Zoom on Thursday,July 22, 2021 at 8:30 am. Robert Cunha,Chairman Alan Fields,Appointed Member Carolyn Kosnoff,Ex Officio Member Joseph Foley,Elected Member Frederick Weiss,Appointed Member