San Bernardino County (Calif.) Employees' Retirement Association plans to commit $125 million to private equity funds this year, according to the $6.7 billion pension fund's private equity plan.
According to the plan adopted by the board Jan. 10, the commitments will be biased toward strategies with stronger early distribution characteristics. Pension fund officials expect to commit $40 million to $80 million to diversified funds of funds and $20 million to $50 million each to distressed, secondaries, mezzanine and direct lending, and buyout and growth equity.
This represents a lower commitment rate, which is expected to reduce the pension fund's private equity investment by three percentage points to 16% of the total portfolio by 2015, according to plan's investment summary for 2012.
Separately, the pension fund reported a gross return of 14% as of year-end 2012, said spokeswoman Nicole Dailey in an e-mail.
The pension fund earned an annualized 9.9% return for the three years and 1.1% for the five years ended Dec. 31.
