Orange County Employees Retirement System, Santa Ana, Calif., committed a total of $175 million to three alternative investment funds.
It committed $75 million to Vista Equity Partners Fund VII, buyout fund with a focus on software, data and technology-enabled solutions companies. OCERS has not invested with Vista in the past.
OCERS also committed $75 million commitment to Monroe Capital Private Credit Fund III. OCERS has invested with Monroe Capital before, including to Monroe Private Credit Fund II.
The pension fund also committed $25 million to Hellman & Friedman Capital Partners IX, a large-cap buyout fund that is expected to invest primarily in companies in North America and Europe.
Separately, the board adopted a new asset allocation in which it doubled the fund's risk mitigating strategy to 10% and increased private equity by two percentage points to 10%, while cutting real assets by five percentage points to 17% and trimming credit by two percentage points to 11%, said Robert Kinsler, spokesman for the $15.8 billion pension plan.
OCERS kept equities at its 35% target allocation, fixed income at 17% and unique strategies at zero with a zero-to-5% allocation range.
OCERS' investment committee at its Oct. 25 meeting doubled the risk mitigation allocation to better protect the portfolio over time, according to a report by investment consultant Meketa Investment Group. It made the other asset allocation changes to make the portfolio more efficient by lowering expected volatility for the same long-term expected return. Consultants Meketa and PCA assisted.