Sacramento County (Calif.) Employees' Retirement System committed $130 million to three alternatives funds and redeemed part of its position within one fund, documents from the $10 billion pension fund show.
At its Wednesday meeting, the board approved a commitment of $50 million to Benefit Street Partners Senior Opportunities Fund II, a direct lending fund. It also committed $45 million to Two Sigma Risk Premia Enhanced Fund, a diversifying hedge fund managed by Two Sigma Investments; and $35 million to Tailwater Energy Fund IV, a real assets fund managed by Tailwater Capital.
SCERA also redeemed $40 million from Grosvenor SC Absolute Return Fund, Series B, a diversifying hedge fund managed by Grosvenor Capital Management. The partial redemption was made to fund direct investments. The plan still has $109 million in the Grosvenor fund.
In addition, AQR Delta Fund II, a diversifying hedge fund managed by AQR Capital Management, remains on SCERA's watch list for performance reasons. The SCERA board partially liquidating its holdings in the AQR fund in September, redeeming $12.5 and keeping roughly $45 million in the fund. AQR spokeswoman Claudia Gray declined to comment.
Meanwhile, Carlyle Group has been taken off the system's watchlist. The plan put two of the manager's Asia-focused opportunistic real estate funds, Carlyle China Realty and Carlyle China Rome Logistics, on watch in October 2018 after Carlyle announced plans to exit the Asia real estate business and have the existing management team spin out as a separate business running the current investments.
SCERA currently has $7.2 million in Carlyle China Realty and $32 million in Carlyle China Rome Logistics. It also has $25 million in Carlyle Power Partners II, an energy fund targeting power generation assets, but that fund had not been placed on watch.
Steve Davis, chief investment officer, could not be immediately reached for additional comment.