FROM: Don Pierce, Chief Investment Officer
SUBJECT: Informational: Beach Point Manager Update
RECOMMENDATION:
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Beach Point Manager Update.
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BACKGROUND:
SBCERA has an investment in the Beach Point Select Fund, managed by Beach Point Capital Management. The fund employs an opportunistic, best ideas credit strategy that invests in high yield bonds, bank loans, structured credit, and special situations.
Founded in 2009 as a spin-off of Post Advisory Group, Beach Point has grown to about $19.0 billion in assets under management. Scott Klein and Carl Goldsmith, co-founders and the firm’s Co-CIOs have been working together since 1997. After the buyout from Post, Beach Point remains 100% owned by its founders.
SBCERA has invested with Beach Point since April 2009 and was a seed investor in the Beach Point Select Fund in November 2011. SBCERA invested $80,000,000 between 2009 and 2013, and more recently another $80,000,000 was added between 2022 and 2024 for a total of $160,000,000 of invested capital. The account has grown to $344,588042 as of December 31, 2024. This represents a net annualized return of 9.2% since inception and 10.2% for the full 2024 calendar year for SBCERA.
Performance for this investment continues to be strong on an absolute basis and relative to SBCERA’s benchmark. The Beach Point team continues to provide significant value to SBCERA in the form of shared insight and perspectives and we are working with Beach Point on expanding the relationship.
BUDGET IMPACT:
None.
STRATEGIC PLANNING GOAL/OBJECTIVE:
Prudent Fiscal Management
STAFF CONTACT:
Amit Thanki
ATTACHMENTS:
Exhibit A: Beach Point Presentation