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Texas County commits $175 million to distressed debt fund

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Texas County & District Retirement System, Austin, committed $175 million to a new distressed debt fund offered by existing manager Arbour Lane Capital Management, a transaction report showed.

Investment officers of the $38.1 billion system directed the commitment to Arbour Lane Credit Opportunity Fund III, the latest in the manager’s series of special situations funds, from the system’s $1 billion distressed debt portfolio.

In 2018, TCDRS committed $150 million to the predecessor fund in Arbour Lane’s fund family.

With the addition of the fund, as of June 23, TCDRS in 2021 has committed $375 million to three distressed debt funds run by three managers, the most recent transaction report showed.

In 2020, TCDRS committed $385 million to four funds from four managers, according to the system’s 2020 transaction report.