Fresno County (Calif.) Employees’ Retirement Association is conducting a shortlist search for a discretionary private credit manager to run a customized fund-of-one portfolio.
The $4.9 billion pension fund’s board at its meeting Wednesday approved the issuing of a request for information to five firms, including incumbent manager Carlyle Group, said Doug Kidd, investment officer.
Mr. Kidd said Carlyle is currently serving as discretionary manager for the entire private credit portfolio, for which the target allocation is 8%.
FCERA’s actual allocation to the asset class as of June 30 was 7.4%. As the plan approaches its target weighting in the class, Mr. Kidd said, “we are now considering how best to maintain the weighting and perhaps even enhance our diversification by type and by geography.”
“The specific charge for this adviser will be to structure a diversified portfolio going forward, selecting best in class (general partners) and funds which will provide meaningful enhancements to portfolio returns without undue risk. It should be a 'fund of one structure,' allowing FCERA some input into the selection of funds, geographies and sectors,” Mr. Kidd said.
A selection should be made sometime in the first half of 2021, he said.
Investment consultant Verus Advisory is assisting.