Orange County Employees Retirement System, Santa Ana, Calif., on April 24 will consider hiring three managers for initial direct lending commitments, according to the agenda for the $9.9 billion pension fund's investment committee meeting.
The managers are Monroe Capital for $50 million, Crescent Capital Group for $30 million and NXT Capital for $30 million.
Pension fund officials launched an RFP for direct lending managers in February.
Separately, the investment committee will be asked to approve a “comprehensive fee policy” that includes intergovernmental cooperation, said Girard Miller, chief investment officer, at the Pension Bridge Conference in San Francisco on Wednesday. If approved by the investment committee, OCERS would be able to negotiate fee deals in combination with other government plans, Mr. Miller said.
“This should strike fear in the hearts of hedge fund managers,” Mr. Miller said during a panel discussion at the conference. Mr. Miller is researching other public pension funds' fee policies and practices, he said in an interview.
OCERS is also in the process of developing a risk mitigation investment approach. BlackRock Solutions is the pension fund's risk adviser.
“We are embarking on a different approach to risk,” Mr. Miller said.
Later in the process, pension fund officials could look at tail-risk hedging, he said.
