Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Board reviews Verus memo showing interest expense drove recent private‑credit fee increases
Summary
Investment consultant Verus told the Imperial County Board of Retirement that higher interest rates — not larger management fees — explain most of the recent rise in private‑credit fees; the board discussed leverage levels, returns and monitoring steps.
The Imperial County Board of Retirement reviewed a Verus memo on April 16 that breaks down recent increases in private‑credit fees and explains why interest costs have been the principal driver.
Verus presenter Brian (last name not specified) told the board that management fees for the managers in question are stable at about 1.25 percent, and administrative fund expenses are relatively small. The largest change has been interest expense tied to leverage: for one manager quoted in the memo interest expense rose from roughly $122,000 in 2022 to about $280,000 in 2024. That increase was driven, Verus said, by higher market interest rates…
Already have an account? Log in
Subscribe to keep reading
Unlock the rest of this article — and every article on Citizen Portal.
- Unlimited articles
- AI-powered breakdowns of topics, speakers, decisions, and budgets
- Instant alerts when your location has a new meeting
- Follow topics and more locations
- 1,000 AI Insights / month, plus AI Chat
