COMPREHENSIVE MUNICIPAL PENSION TRUST FUND BOARD NEWS
Published on October 08, 2024
Comprehensive Municipal Pension Trust Fund Board Invests $20,000,000 with African American- Owned Private Credit Manager
The move increases the CMPTF’s MWDBE utilization to over thirty-percent from zero in 2022
Pittsburgh, PA – The Comprehensive Municipal Pension Trust Fund (“CMPTF”) has selected Brightwood Capital Fund V to manage a $20,000,000 private credit investment on behalf of the City’s pension funds, in yet another major move for the administration’s commitment to advancing economic inclusion for diverse investment managers. With the selection of Brightwood Capital, in addition to previous investments, the CMPTF now has an MWDBE utilization of over thirty percent, up from zero in 2022.
“Not only am excited to extend this opportunity to Brightwood Capital, but I am excited about what it signifies for us as a city.” said Mayor Ed Gainey. “Spreading opportunity is how we ensure that everyone is provided with an opportunity to thrive, and the selection of this diverse firm only further aligns with our commitment to prioritizing inclusivity in the City of Pittsburgh.”
The CMPTF issued a Request for Proposal (RFP) for a Private Credit Advisor. A subcommittee of Trustees, which included, Rachael Heisler, Richard Ruffolo, and Felicity Williams, was selected to review the proposals and make a recommendation.
“Having the support of my fellow trustees to advance policies and decision making that further our diverse investment manager goals is invaluable,” said Felicity Williams, Deputy Chief of Staff to Mayor Gainey and CMPTF Subcommittee Trustee. “As local government, who we do business with matters and should be reflective of the rich diversity of our city and the people we serve.” “This selection only furthers our efforts to make this a reality.”
During the search, the board received ten (10) responses to this opportunity. At the recommendation of the subcommittee, the CMPTF Board of Trustees approved investment with both Brightwood Capital Fund V (Brightwood) and Partners Group Private Credit Strategy Class A (Partners Group). The selected will manage the CMPTF’s private credit investments at an initial amount up to $20,000,000 per manager, for a total of $40,000,000 which represents a 5% allocation of the invested portfolio to private credit. The two together are complimentary investment strategies representing both closed-end and open-end funds respectively.
Brightwood is a 100% African American-owned middle market private credit platform with almost fifteen years experience. Although not a diverse-owned firm, Partners Group demonstrated alignment with our economic inclusion goals represented by the racial, ethnic, and gender diversity of their professionals, senior executives, and management.
Brightwood was selected based on their strong record of performance since its inception in 2010 and senior position in the capital structure of its investments, as well as the transparency we have in the investments they already made and immediate opportunity for return due to their structure as a closed-end fund approaching their final close. Partners Group was selected based on its excellent return on investments since its inception in 2021, competitive fee proposal, and incentive fee.
ABOUT BRIGHTWOOD CAPITAL FUND V
Founded in 2010, Brightwood Capital Advisors is a 100% African American owned middle market private credit platform focused on providing senior debt capital to U.S. companies with EBITDA of $5 - $75 million through the LP-GP private funds and separately managed accounts. Brightwood focuses on five core verticals - healthcare services, business services, technology and telecommunications, transportation and logistics, and franchising. Since 2010, Brightwood has specialized in creating and managing private investment funds on behalf of institutions, primarily public and corporate pensions and insurance companies. Since its founding, Brightwood has invested over $10.0 billion into nearly 200 companies. The Firm is headquartered in New York City with an Origination presence Chicago.