Searches and Hires

Orange County slates $50 million for venture capital, sets private credit pacing

Orange County Employees Retirement System, Santa Ana, Calif., committed a total of $50 million to two venture capital and growth equity funds managed by GGV Capital, said Robert Kinsler, spokesman for the $15.9 billion pension plan, in an email.

OCERS committed $40 million to GGV Capital VII and $10 million to GGV Capital VII Plus. Both funds would employ the same investment strategy leading or co-leading venture capital investments in information technology companies in China or the United States. The firm's approach is to take advantage of the proliferation and continued adoption of internet usage in China and the U.S. and the structural shift toward consumption using mobile phones.

GGV Capital VII will invest $5 million to $20 million for an approximate ownership stake of 5% to 15% per company. GGV Capital VII Plus would only invest in GGV VII portfolio companies should the total investment size surpass $20 million. This would allow GGV to invest in later rounds in portfolio companies.

OCERS has not invested with GGV Capital in the past. OCERS has an 8% target private equity allocation.

Separately, OCERS officials expect to make nearly $150 million in commitments each year through 2023 to private credit strategies. OCERS officials are considering committing capital to new funds by current credit managers, including Monroe Capital Private Credit Fund III, BlueBay Direct Lending Fund III and Alcentra's Clareant European Direct Lending Fund III. Also under consideration is a new investment opportunity in Owl Rock Technology Finance, a new business development company by Owl Rock Capital Partners.

Overall, OCERS' officials are looking to continue the fund's strategic goals for its $1.8 billion credit portfolio of moving toward a balanced geographic split between the U.S. and the rest of the world, and consolidating its credit manager roster toward high-conviction managers. It has an 11.5% current allocation to private credit and a 13% target.