Kern County (California) Employees Retirement Association plans to commit up to $120 million to private equity this year, over 25 percent more than its 2023 commitments.
The fundraising environment is constrained as many LPs either remain overallocated to private equity or face liquidity concerns due to the slowed exit market. However, Kern County’s increase in planned commitments shows that some LPs do have allocation capacity, along with an interest in adding new managers to their portfolios.
Through a presentation from consultant Cambridge Associates, the $5.3 billion system reviewed its 2024 private markets pacing plan at its February 8 board meeting. Buyouts reviewed the pacing plan.
According to the presentation, Kern County may include a commitment to a new manager, along with a possible commitment to an early-stage or sector-focused venture capital manager.
The pacing plan also suggests the system to “flexibly consider adding international exposure where market dynamics are attractive.”
Kern County plans to commit $60 million in anticipated re-ups to buyouts managers, $30 million to a potential new manager and $30 million to a venture capital fund, the presentation said.
According to a review of its 2023 private equity program, Kern County made its first co-investment via a $10 million commitment to a Warren Equity Partners-associated vehicle.
Over half of the system’s 2023 commitments were made to two secondaries funds as it “augmented its secondaries exposure with the addition of a GP-led secondaries strategy.”
The secondaries commitments included a re-up with LGT-Crown Global Secondaries and a new commitment to Blue Owl Strategic Equity Fund.
Kern County currently allocates 3.9 percent of its total fund to private equity, below its 5 percent target.
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