San Diego County Employees Retirement Association's board committed $75 million to Oaktree CLO Equity Fund I, and the $16 billion pension fund's board said it made the commitment at its Dec. 14 meeting.
Oaktree Capital Management expects to invest the fund, targeted at $500 million, in the equity and junior mezzanine tranches of Oaktree-managed CLOs and others. Oaktree is committing 15% of the fund's total capital.
SDCERA has invested with Oaktree since its founding, Tom Williams, deputy chief investment officer told the board. Oaktree's $11.2 billion CLO portfolio has had a 1.1% return since 2014 and the fund expects a net internal rate of return of 15%-20% per year, he said.
Separately, SDCERA's board renewed Aon Investments USA's contract to provide real estate consulting services. Its contract was set to expire on Jan. 31. Aon is also the pension fund's general investment consultant.
SDCERA has a 10% target allocation to real estate and a $1.1 billion real estate portfolio.
