Ventura County (Calif.) Employees’ Retirement Association is launching a direct co-investment program and plans to make up to $20 million in investments in 2025.
The $8.6 billion pension fund’s board approved the program at its Nov. 18 meeting, a webcast of the meeting showed.
In a memo to the board, CIO Dan Gallagher recommended the launch of the program because directly investing in portfolio companies alongside existing private equity, private credit, infrastructure and real estate funds is typically offered on a zero or reduced-fee basis.
Since 2010, VCERA has committed a total of $174 million to co-investment funds, and Gallagher said the pension fund can save up to $4 million in management fees and carry costs in 2025 through the direct co-investment program.
As part of the launch, VCERA will search for a new investment officer who is experienced in evaluating and executing co-investments.
As of Sept. 30, the pension fund’s actual allocations to private equity, private credit, real estate and real assets were 17.6%, 7.5%, 5.6% and 5.5%, respectively; their respective targets are 18%, 10%, 8% and 6%.
