Glasgow City Council, as administering authority to the Strathclyde Pension Fund, is seeking to appoint an investment manager, or managers, to manage a private corporate debt mandate. Managers and proposed mandates will need to be able to comply with LGPS regulations. The manager should be able to offer an implementation solution either through the construction of a segregated evergreen portfolio or through the management and allocation to a range of underlying debt managers.

Glasgow City Council, as administering authority to the Strathclyde Pension Fund, is seeking to appoint an investment manager, or managers, to manage a private corporate debt mandate. Managers and proposed mandates will need to be able to comply with LGPS regulations. The manager should be able to offer an implementation solution either through the construction of a segregated evergreen portfolio or through the management and allocation to a range of underlying debt managers.

The mandate will be focused predominantly on senior secured direct corporate lending, either first or second lien, to corporate borrowers.

The loans should be viewed as equivalent to sub-investment grade credit risk. The strategy may also include allocations to unitranche, mezzanine (junior debt) and other forms of debt and potentially a small allocation to equity.

The expected return on this mandate is in the region of LIBOR plus 4-6 % p.a. net of fees and costs. The proposed mandate size is between 300 000 GBP and 600 000 GBP, although Glasgow City Council reserve the right to alter the value and coverage of the mandate both initially and over the period of the mandate.