The California State Teachers’ Retirement System (CalSTRS) has allocated $1 billion to Owl Rock Capital, an alternative asset manager focused on direct lending.
The partnership with a customized mandate will be distributed across the Owl Rock platform, including allocations to its opportunistic credit and diversified lending strategies.
According to filings with the Securities and Exchange Commission, Owl Rock sponsors a number of traded and non-traded business development companies including Owl Rock Capital Corporation (NYSE: ORCC), Owl Rock Capital Corporation II, Owl Rock Capital Corporation III, and also sponsors Regulation D private placement offerings including the Owl Rock First Lien Fund and Owl Rock Opportunistic Fund.
“CalSTRS…views this partnership as an efficient way to generate portfolio returns on behalf of California’s educators,” said Scott Chan, CalSTRS deputy chief investment officer. “Our partnership aligns with the CalSTRS Collaborative Model investment strategy, which focuses on leveraging our partners to reduce costs, increase investment returns and control risk.
CalSTRS provides retirement benefits to more than 964,000 members whose CalSTRS-covered service is not eligible for Social Security participation. Members retire on average after more than 24 years in the classroom with a monthly benefit of approximately $4,547.
Established in 1913, CalSTRS is the largest educator-only pension fund in the world with approximately $262.5 billion in assets under management as of August 31, 2020.
Owl Rock Capital, together with its subsidiaries, is a New York based direct lending platform with more than $20 billion of assets under management as of September 30, 2020.