San Bernardino (Calif.) County Employees' Retirement Association board approved a new strategic plan for its $282 million private equity allocation: 40% buyouts, 20% venture capital, 10% secondaries, 10% special situations, 10% mezzanine and 10% distressed debt, said Don Pierce, investment officer for the $4.7 billion fund. Consultant New England Pension Consultants is assisting. The board has already committed $25 million to buyout fund Aurora Equity Partners II; funding came from cash.
Separately, the board broadened the derivatives investment mandate of Goldman Sachs Asset Management, which runs $220 million in active global fixed income for the system. The firm had been limited to forward contracts; now all types of derivatives transactions are allowed.
The board also adopted a new alternative investment search policy, allowing staff to bring a single candidate for board approval rather than a slate of finalists. The change was made to allow the fund to invest quickly as opportunities arise.