Sacramento County (Calif.) Employees' Retirement System disclosed $160 million in infrastructure and private equity commitments completed in June and July, according to a transaction report posted on its website.
The $12.4 billion pension fund committed $50 million to Ara Fund III, an infrastructure fund managed by Ara Partners; $40 million to Meridiam Infrastructure North America Fund IV, an infrastructure fund managed by Meridiam Infrastructure Partners; €32 million ($36 million) to Alchemy Special Opportunities Fund V, a distressed debt fund managed by Alchemy Partners; and €30 million to European buyout fund CVC Capital Partners IX during the two months, according to the report.
The pension fund previously committed €42 million to Meridiam Sustainable Infrastructure Europe IV in 2021. Ara Partners, Alchemy Partners and CVC Capital Partners are all new managers for the pension fund.
As of June 30, the actual allocations to private equity and private real assets were 11% and 7.4%, respectively; their respective targets are 11% and 7%.
Also during the two months, the pension fund terminated Brookfield Asset Management from a $108 million diversified real assets portfolio, according to the report. The termination was due to an "asset allocation revision." SCERS originally hired Brookfield in 2019 and the original portfolio size was $100 million.
The pension fund also made a full redemption in April from its $59 million investment in even-driven hedge fund Third Point Partners Qualified. A reason for the redemption was not provided. The pension fund originally invested $25 million in the hedge fund in 2012, and the report said it had generated an annualized net return of 7.6% for SCERS since inception. Steve Davis, chief investment officer, said in an email the redemption was due to portfolio fit and underperformance. Officials at Third Point could not be immediately reached for comment.
As of June 30, the actual allocation to absolute return was 6.5%; the target is 7%.
