Kern County Employees' Retirement Association, Bakersfield, Calif., plans to make about $260 million in new private markets commitments in 2023.
The $5.2 billion pension fund's private markets consultant Cambridge Associates presented the plan at the board's meeting on Wednesday, said Daryn Miller, chief investment officer, in an email.
The pacing plan reflects the pension fund's goal of reaching the 15% target to private markets by 2026, according to a presentation included with board meeting materials. Individual targets within private markets are 5% of total assets each to private credit, private equity and private real estate. As of Sept. 30, the actual allocations to the asset classes were 4.8%, 2.7% and 2%, respectively.
In 2022, KCERA made $338 million in commitments to 11 private markets funds.
For the upcoming year, the pension fund plans to commit a total of up to $90 million to buyout funds, up to $85 million to private real estate funds, up to $80 million to private credit funds, and up to $30 million to secondary private equity funds. The proposed $260 million total commitment plan provides for some variance in individual fund commitments.
The pension fund does not issue RFPs for private markets funds. Cambridge Associates recommends commitments, which must be approved by the board.