Orange County Employees pension fund to search for direct-lending manager

Orange County Employees Retirement System, Santa Ana, Calif., is preparing to launch a search for a manager to run a new $104 million direct-lending portfolio, said Robert Kinsler, spokesman for the $9.9 billion pension fund in an e-mail concerning the Jan. 23 investment committee meeting.

The search is the result of a new asset allocation plan that carves out 7% of the total portfolio to diversified credit managers including direct lending. NEPC will be conducting an invitation-only shortlist search, which it expects to be completed over the next 60 to 75 days, according to an NEPC memo to the investment committee. However, Mr. Kinsler wrote that the committee did not set a timetable for the search.

At the same meeting, the investment committee transferred $104.3 million from a LaSalle Investment Mangement global real estate securities portfolio to the BlackRock (BLK) Developed ex-U.S. Real Estate index fund. The committee opted to reallocate its actively managed global real estate securities portfolio to an indexed international real estate portfolio because of lower fees and greater international diversification, according to a staff memo.