Merced County (Calif.) Employees' Retirement Association approved three new alternative fund commitments totaling up to $38 million.
The $1.1 billion pension fund's board at its meeting Thursday approved commitments of up to $20 million to Ares Capital Europe VI, a direct lending fund managed by Ares Management, and up to $10 million and $8 million to middle-market buyout funds Cortec Group Fund VIII and Genstar Capital Partners XI, respectively, said Kristen Santos, retirement plan administrator, in an email.
The pension fund previously committed up to $20 million to Ares Senior Direct Lending Fund II and up to $8 million to Genstar Capital Partners X, both in 2021, and up to $10 million to Cortec Group Fund VII in 2019.
As of Dec. 31, the pension fund's actual allocations to private equity and direct lending were 13.8% and 3.1%, respectively; their respective targets are 15% and 5%.
