The New York City Board of Education Retirement System (NYC BERS), managing $11 billion, is moving deeper into private credit while trimming private equity exposure. After three years of weak returns and slow distributions, the $11 billion fund sees a “mathematical incentive” to prioritize credit investments that meet its cashflow needs. Sanford Rich, executive director of NYC BERS, says this strategy serves both offensive and defensive purposes as private equity recovers.
The shift reflects broader trends of pensions seeking stable income amid PE market downturns, positioning credit as a core allocation to balance risk and return.
Source: PE International · Summarized by HeadlinesBriefing