Orange County Employees Retirement System, Santa Ana, Calif., is expected to adopt on Jan. 29 a plan that would include committing $120 million to private equity this year, according to materials on the $11 billion pension fund's website.
The private equity pacing plan, proposed by private equity consultant NEPC, also includes $150 million in commitments in 2015 and $150 million in 2016.
The pension fund has a 5% target allocation to private equity; 3.5% of plan assets are invested in private equity.
The pension fund investment committee, at its Jan. 29 meeting, also plans to determine whether to commit up to $125 million for real estate debt investments. Under recommendations from Chief Investment Officer Girard Miller and consultant R.V. Kuhns, the pension fund would commit $75 million to Oaktree Capital Management's Oaktree Real Estate Debt Fund and $50 million to True North Management Group's True North Real Estate Fund II (with a minimum of $25 million initially and not to exceed 20% of the investment fund's total assets.) However, if the committee prefers to invest with one manager, the recommendation is to commit a minimum of $75 million to Oaktree (not to exceed $100 million and not to exceed 10% of the investment fund's total assets), or $125 million in a separate account.