Key Takeaways
- • San Bernardino County Employees' Retirement System (SBCERA), a $16.37B pension fund, is earmarking $575M across global credit investment vehicles, according to Markets Group.
- • Goldman Sachs Private Credit Global Franchise receives $200M, split between a $100M commitment to West Street Strategic Solutions II and a $100M Fund of One co-investment vehicle.
- • Arini Credit receives a recommended $200M across three allocations: $50M to the Arini Credit Master Fund, $75M to Arini Credit Opportunities Fund II, and $75M to a Fund of One co-investment vehicle.
- • Arrow Global Group receives a proposed $175M, including $125M to Arrow Credit Opportunities III and $50M to a separately managed account.
- • Consultant NEPC recommended the allocations at the pension's most recent investment committee meeting, following a 2024 project to identify global credit capabilities.
Summary
San Bernardino County Employees' Retirement System (SBCERA) is committing $575M to credit investment vehicles as it seeks to diversify its global credit exposure, according to Markets Group. The $16.37B pension fund's spokesperson said the strategy reflects shifting capital markets and economic conditions, and that the pension launched a project to identify global credit capabilities to inform future investment decisions. The effort began in 2024, when the investment team expanded the portfolio's existing European credit exposure following a market survey and identification of priority areas.
At its most recent investment committee meeting, the pension's consultant, NEPC, recommended several allocations drawn from that research. The largest is $200M to the Goldman Sachs Private Credit Global Franchise: $100M to West Street Strategic Solutions II, which invests across the capital structure in 30 to 50 companies with a target allocation of 50% to 60% in the Americas, 20% to 30% in Europe, and 10% to 15% in Asia, and $100M to a customized Fund of One co-investment vehicle. The Fund of One will target asset-backed finance, project finance and infrastructure debt, global trade receivables, mezzanine or junior direct lending, and senior direct lending, according to the meeting materials.
NEPC also recommended a $200M commitment to Arini Credit, a manager focused on European corporate credit. Per the materials, the allocation comprises $50M to the Arini Credit Master Fund, $75M to Arini Credit Opportunities Fund II, and $75M to a Fund of One co-investment vehicle. The manager reportedly posted a 17.3% net internal rate of return from January 2022 through June 2025 and targets a net return of 15% plus over a market cycle.
A proposed $175M commitment to Arrow Global Group rounds out the recommendations: $125M to Arrow Credit Opportunities III and $50M to a separately managed account that may hold positions from ACO III and Arrow Lending Opportunities I, the first commingled vintage of Arrow's European real estate bridge and development lending platform. Arrow's strategy targets credit portfolios and single-name investments (40% to 60%), bankruptcies and restructurings (25% to 35%), and secured collateral or value-add opportunities (15% to 25%).
The recommendations reflect SBCERA's effort to deepen credit exposure through flexible, manager-led structures and customized co-investment alongside flagship strategies. Note that the original article could not be retrieved in full, so this summary is based on headlines and supplemental reporting on the same meeting materials.
At its most recent investment committee meeting, the pension's consultant, NEPC, recommended several allocations drawn from that research. The largest is $200M to the Goldman Sachs Private Credit Global Franchise: $100M to West Street Strategic Solutions II, which invests across the capital structure in 30 to 50 companies with a target allocation of 50% to 60% in the Americas, 20% to 30% in Europe, and 10% to 15% in Asia, and $100M to a customized Fund of One co-investment vehicle. The Fund of One will target asset-backed finance, project finance and infrastructure debt, global trade receivables, mezzanine or junior direct lending, and senior direct lending, according to the meeting materials.
NEPC also recommended a $200M commitment to Arini Credit, a manager focused on European corporate credit. Per the materials, the allocation comprises $50M to the Arini Credit Master Fund, $75M to Arini Credit Opportunities Fund II, and $75M to a Fund of One co-investment vehicle. The manager reportedly posted a 17.3% net internal rate of return from January 2022 through June 2025 and targets a net return of 15% plus over a market cycle.
A proposed $175M commitment to Arrow Global Group rounds out the recommendations: $125M to Arrow Credit Opportunities III and $50M to a separately managed account that may hold positions from ACO III and Arrow Lending Opportunities I, the first commingled vintage of Arrow's European real estate bridge and development lending platform. Arrow's strategy targets credit portfolios and single-name investments (40% to 60%), bankruptcies and restructurings (25% to 35%), and secured collateral or value-add opportunities (15% to 25%).
The recommendations reflect SBCERA's effort to deepen credit exposure through flexible, manager-led structures and customized co-investment alongside flagship strategies. Note that the original article could not be retrieved in full, so this summary is based on headlines and supplemental reporting on the same meeting materials.
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