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Frederick County retirement committees hear private‑credit pitches, defer decision to May
Summary
Presenters from TPG, Carlyle and Audax outlined differing private‑credit strategies for Frederick County’s pension plans; the committees agreed to defer any decision on adding private credit and possible manager selection until their May meeting so absent members can review materials.
A joint meeting of the Frederick County Employees Retirement Plan and the Frederick County Uniformed Employees Retirement Plan Committees on April 14 heard three private‑credit manager presentations and deferred a final decision on whether to add private credit to the plans.
Patrick Wing of Marquette Associates reopened prior asset‑allocation discussions and framed a possible two‑manager approach pairing a differentiated lower‑middle‑market lender with an upper/core‑middle‑market lender. Presenters described contrasting strategies and liquidity profiles but the Committee made no commitment to adopt private credit at this meeting.
TPG representatives Grant Haggard and Nick Fleming outlined TPG Twin Brook’s focus on first‑lien, senior‑secured loans to sponsor‑backed lower middle‑market companies (typical EBITDA $25 million–$50 million). They highlighted selectivity—screening roughly 1,500 opportunities a year with an expected close rate near 3%—quarterly third‑party valuation reviews, and an evergreen structure with rolling three‑year investment periods and limited liquidity through a runoff sleeve.
Elizabeth Kahles and Catherine Verri of Carlyle presented the Carlyle Direct Lending Fund, describing a core middle‑market portfolio (EBITDA roughly $25 million–$100 million-plus), a fee‑advantaged structure (0.80% management fee, no incentive fee), and a hybrid open‑ended vehicle with a two‑year principal lockup followed by quarterly redemptions.
Michael Petroff and Sean O'Keefe of Audax described a long‑tenured, highly diversified direct‑lending platform with approximately $5 billion in assets under management, a one‑year lockup, and crossing mechanics that the presenters said have avoided forced sales and gates historically. Audax emphasized capital preservation and reported a very low platform loss statistic.
Committee members discussed two separate questions: whether to add private credit as a new asset class for the plans, and, if so, which manager or managers to appoint. Because several committee members were absent, the Committee agreed to defer a final decision to the May meeting and asked all members to review the managers’ materials and presentation recordings before voting. No allocation or manager selection was approved at the April meeting.
The Committee’s next regular meeting is scheduled for May 12, 2026, in person at Winchester Hall.
