San Diego City Employees' Retirement System plans to commit $250 million to private equity and infrastructure in fiscal year 2020, said Liza Crisafi, CIO for the $8.8 billion pension plan, in an email.
SDCERS has a 10% target allocation to private equity and a 3% allocation to infrastructure. The pension plan has two consultants each responsible for half of the portfolios: GCM Grosvenor and StepStone Group.
According to GCM Grosvenor's pacing plan adopted by the board at its Sept. 13 meeting, it plans to commit $175 million to private equity and infrastructure in fiscal year 2020. Grosvenor's plan is to make three to seven investments including mezzanine, co-investments an special situations. Grosvenor plan calls for committing $5 million to $30 million per fund and $5 million to $15 million per co-investment.
Under StepStone's plan, SDCERS would commit $75 million to private equity and infrastructure funds in fiscal year 2020. SDCERS would commit $10 million to $30 million per commitment with an emphasis on opportunistic investments including secondary market, co-investments and seasoned primaries, which are funds that have already spent 5% to 50% of their committed capital by the time SDCERS enters the fund.