The Orange County Employees Retirement System board, Santa Ana, Calif., on Monday approved investing $150 million in private equity funds of funds this year and expects to issue an RFI in July, said Keith Bozarth, executive director of the $6.5 billion system. Officials plan to select an undetermined number of managers in August or September. In February, the board approved investing its entire 5% alternatives allocation in private equity funds of funds. Callan Associates is assisting.
Separately, the board approved issuing an RFI for two real estate closed-end value-added commingled fund managers to split a total of $60 million to $70 million. The investment will be the system's first foray into value-added realty and is being made for diversification and increased returns. The addition will bring the system to its 10% real estate target. Hirings will be based on recommendations by Callan, and selections are expected to be made in July.
The board also instructed staff to draft a formal policy preventing managers from marketing their investment strategies directly to board members during a search. This would largely formalize customary system practices, Mr. Bozarth said. The quiet period would start once the board approves a search and end when the board makes a selection.
