Alameda County Employees’ Retirement Association plans on committing more than $1.1 billion to its private equity portfolio over the next four years to hit its 11 percent target allocation by 2027.
Many retirement systems are slowing their commitment pacing to deal with overexposure to private equity. However, several systems like Alameda County remain underweight to their target, which may prove advantageous as new opportunities emerge as other LPs back off.
Alameda County’s board will vote on a pacing plan proposed by consultant Verus at its meeting February 16. Buyouts reviewed a copy of Verus’s presentation, originally introduced at the $10.2 billion system’s investment committee meeting earlier in the month.
Alameda County currently allocates 9.1 percent of its total fund to private equity. Its private equity portfolio is divided into buyout, venture capital and debt/special situations categories.
The bulk of the proposed allocation will go to buyout opportunities, with a proposed $624 million slated for between nine and 12 new funds over the next four years, according to the presentation. Alameda County dedicates 60 percent of its private equity portfolio to buyouts.
The system’s best performing buyout funds were three Great Hill funds, Sycamore Partners, Warburg XII, Peak Rock II, KPS IV and V and Audax VI, according to a presentation made at Alameda County’s January investment committee meeting.
Alameda County plans on committing $232 million until 2026, spread across nine to 12 venture capital funds. The system also eyes $304 million in planned commitments to eight debt and special situations funds over the next four years, the presentation said.