Orange County Employees Retirement System, Santa Ana, Calif., committed $341 million to six alternative investment funds, according investment committee agenda materials for the $16.2 billion pension fund.
Pension fund officials committed $75 million each to Thoma Bravo Fund XIV, an upper-middle-market software and technology-enabled buyout fund; SVP Strategic Value Dislocation Fund, an event-driven and special situations credit fund managed by Strategic Value Partners; and Waterton Residential Property Venture XIV, a value-added multifamily real estate fund.
OCERS also committed $50 million to Stellex Capital Partners II, a special situations buyout fund managed by Stellex Capital Management; $40 million to Altaris Health Partners V, a North American middle-market buyout fund managed by Altaris Capital Partners; and €23 million ($26 million) to Vitruvian Investment Partnership IV, a North American middle-market buyout fund managed by Vitruvian Partners.
Altaris Capital Partners is targeting $2.5 billion and a $3 billion hard cap for its latest fund, board documents show.
Separately, the investment committee at its June 24 meeting approved a pacing plan of $550 million in private equity commitments in 2021 to move toward its new 13% target allocation, spokesman Robert Kinsler said in an email.
According to its commitment plan, pension fund officials expect to make 10 to 13 commitments of between $20 million and $100 million. In March, OCERS increased its private equity target to 13% from 10%. As of Dec. 31, OCERS had 2.7% invested in private equity. OCERS' private equity portfolio has had a 13.3% net internal rate of return from inception to Dec. 31, it's fourth-quarter 2019 private equity return update shows.
Private equity consultant Aksia, formerly TorreyCove Capital Partners, assisted.
In other news, OCERS placed a $230 million AQR international developed equity portfolio and $233 million Loomis Sayles & Co. conservative high-yield strategy on its watchlist. AQR was placed on watch for underperformance and staff turnover. Loomis Sayles was placed on watch for underperformance.
AQR spokeswoman Claudia Gray declined to comment. Loomis Sayles spokeswoman Erin Heard could not be immediately reached for comment.