Defined Benefit Fund Private Credit

Private Credit Portfolio Development at OPERS Using only external managers, OPERS has developed a private credit portfolio within the greater Defined Benefit (DB) plan. The primary benefits of investing in non-publicly traded credit are:

Focus on Direct Lending

The majority of the OPERS Private Credit portfolio will be allocated to direct lending. Direct lending is when non-bank entities, such as investment managers, provide loans directly to companies without the use of an intermediary, such as a bank. These private loans offer borrowers more tailored financing solutions than traditional loans and offer investors higher returns than those available in public markets. While these companies are generally not investment grade and are more comparable to those in the public high-yield or leveraged loan markets, they are diverse firms that are expected to be able to repay their debt. Most importantly, these loans are senior secured first-lien debt, meaning the lenders would be paid back first in case of any financial distress.