Kern County Employees' Retirement Association, Bakersfield, Calif., approved commitments totaling up to $305 million at its Aug. 14 board meeting.
In emerging markets equity, the $5.7 billion pension fund's the board hired ABS Global Investments and Carrhae Capital to manage $70 million each in active emerging markets equity. Funding comes from partial redemptions from passive emerging markets equity portfolios managed by BNY Mellon Investment Management and Dimensional Fund Advisors.
With the two emerging markets equity commitments, the systems’ percentage of active management in the emerging markets equity segment is rising to 91.1% from 44.4%.
Across private markets, KCERA made several commitments.
The board approved a $30 million allocation to Covenant Apartment Fund XII, a value-added real estate fund managed by Covenant Capital Group. It marks the third Covenant fund to which the pension fund has committed.
A $50 million commitment was made to Sculptor Real Estate Fund V and an up to $10 million commitment to related co-investments. Sculptor Capital Management is a new real estate manager for the pension fund.
As part of the retirement system’s private credit allocation, the board approved an up to $25 million commitment to Fortress Credit Opportunities Fund VI, a distressed debt fund managed by Fortress Investment Group. The pension fund has also committed to previous Fortress funds.
The board also approved a $50 million commitment to TPG Angelo Gordon Essential Housing Fund III.
CIO Daryn Miller was not immediately available for comment.
