Sacramento County (Calif.) Employees' Retirement System made two commitments totaling $75.5 million, said newly released investment reports from recent board meetings.
The $9.3 billion pension fund committed $50 million to Benefit Street Partners Senior Secured Opportunities Fund, a direct lending fund. It also committed $25.5 million to EnCap Flatrock Midstream Fund IV, an energy fund.
Separately, the pension fund is looking to invest in at least two hedge funds this year, confirmed Chief Investment Officer Steve Davis. The system will determine which hedge funds to invest in during the second half of 2018.
The pension fund plans to increase its exposure to diversifying strategies such as market-neutral, global macro and multistrategy.
The target of adding two funds is part of an implementation plan to increase SCERS' diversifying absolute-return portfolio toward its 7% target allocation, Mr. Davis added. The allocation to diversifying absolute return was 3.9% as of Dec. 31, according to a quarterly report prepared by SCERS' investment consultant, Verus. Funding will come primarily from the pension fund's overlay program.
