San Bernardino County (Calif.) Employees' Retirement Association approved pacing plans for its private equity and real estate allocations for 2021 through 2023, confirmed Olivia Applegate, spokeswoman for the $11.9 billion pension fund.
At its Jan. 7 meeting, the board approved investment consultant NEPC's recommendations to commit $550 million to private equity this year, and between $550 million and $650 million per year over the next two to three years.
The pension fund has a target allocation to private markets of 16% with a permitted range of 6% to 21%. It had $1.8 billion in private equity as of Sept. 30.
SBCERA committed $430 million to private equity funds in 2020.
Meanwhile, the pension fund plans to commit about $110 million to real estate annually from 2021 through 2023. Half of these funds will target core real estate investments, while half will target non-core.
SBCERA has a long-term strategic target allocation of 7% to real estate, with a permitted range of zero to 14%. The pension fund's current exposure to real estate is $453 million.
The pension fund committed $115 million to real estate in 2020.