The pension trust for employees of San Luis Obispo County (California) will add $20m to its commitment to the TPG-TSSP Diversified Credit Program.

Board members overseeing the $1.4bn San Luis Obispo County Pension Trust approved increasing the amount committed to the Diversified Credit Program to $95m from $75m and authorized investment in an additional fund, the TSSP Credit Solutions Fund, within the portfolio.

San Luis Obispo has a 5% target allocation to private credit. Its sole private credit allocation is to the TSSP Diversified Credit Program.

According to board documents, the size of the commitment was intentionally larger than 5% to accommodate “the ebb and flow of capital calls and distributions from private credit….”

Currently the value of the pension trust’s investment in the TSSP programme is about $44m. Thus far $41m of the allocated $75m has been called.

The Diversified Credit Program is set up as a fund-of-one evergreen structure just for San Luis Obispo County, which in turn invests in various funds managed by TPG-Sixth Street Partners.

As currently structured the Diversified Credit Program invests in the TSSP Adjacent Opportunities Fund, which targets a range of private credit opportunities; the TSSP Structured Lending Europe fund, which invests in direct loans to European middle-market companies; and the TSSP par liquid credit fund, which invests in floating rage leveraged loans and structured credit.

TPG is forming a new fund, the TSSP Capital Solutions Fund – which will join the other three in the Diversified Credit Program.

It will invest in opportunities across the capital structure for late-stage growth companies, according to board documents.

San Luis Obispo’s consultant, Verus, recommended expanding the Diversified Credit Program to include this and increasing the allocation by $20m.

Earlier this year, San Luis Obispo boosted its private credit allocation as part of a broader rebalancing.

San Luis Obispo County adds to TSSP commitment on HFM InvestHedge.