Orange County Employees Retirement System, Santa Ana, Calif., committed about $390 million to alternative investment funds and co-investments, according to staff reports.
The $22.4 billion pension fund committed $150 million to Owl Rock Technology Finance Corp. II, a direct lending fund managed by Blue Owl Capital. Eighty percent of the value of the fund, which seeks to raise $5 billion, will be invested in U.S. technology companies.
OCERS also committed $75 million to Asana Partners Fund III, a $1.5 billion value-added real estate fund focused on investing in niche neighborhood mixed-use assets.
The pension fund also committed €44 million ($48 million) to PAI Partners VIII, a buyout fund that invests in midcap and large-cap companies primarily in Western Europe but also selectively in North America.
OCERS committed $30 million to C-Bridge Healthcare Fund V, a buyout fund managed by CBC Group that invests in health-care companies in Asia as well as some U.S. companies looking to expand into Asia.
The pension fund also committed a total of $30 million to two funds managed by New Enterprise Associates: $18 million to NEA 18 Venture Growth Equity, a late-stage venture capital and growth equity fund; and $12 million to NEA Partners 18, a seed and early stage venture capital fund.
Pension fund officials also committed $27 million Accel-KKR Growth Capital Partners IV, a fund with a $1.35 billion target that will invest in software and technology-enabled services companies in North America and Western Europe.
OCERS also committed $10 million each to Minerva Partners, a co-investment in a buyout of a U.S. health-care company managed by Hellman & Friedman; and to Falcon Co-Investment Partners, a co-investment in a U.S. health-care software and technology business managed by Clearlake Capital Group.
The pension plan also committed €9 million ($10 million) to Enak Aggregator, a co-investment in a Europe wealth management solutions platform managed by Cinven.
Separately, OCERS rehired Meketa Investment Group as its general investment consultant; Aksia as its private equity consultant; and Townsend Group, an Aon company, as its real estate consultant. The selections were made following an invitation-only search.
Separately, OCERS at its Feb. 23 meeting adopted a new investment framework and target weights for its $2 billion risk-mitigation portfolio. The allocation is now divided into thirds: 33% each to first responders, a portfolio of long-term Treasury bonds; second responders, which includes trend following; and diversifiers, which has global macro and alternative risk premiums. Before the change, the portfolio, which has a 10% target, was allocated equally with 25% each to long-term Treasuries, trend following, global macro and alternative risk premiums.
In other action, OCERS set a real estate investment plan for 2022 to commit $350 million to $425 million. Of the total 2022 commitment, a combined $200 million is expected to be committed to core and/or core-plus funds, and $150 million to $225 million to non-core funds.
OCERS has a 7% real estate target and a $1.1 billion real estate portfolio.
