San Bernardino sets about half of $500 mln PE target for new relationships

  • $10.4 bln system has 16 pct target for PE
  • SBCERA $500 mln pacing would match 2018
  • Seven GPs with master custodial accounts slated for new commitments

San Bernardino County Employees’ Retirement Association plans to commit $270 million to existing general partners in its PE portfolio for 2019, accounting for more than half its $500 million pacing target for the year.

The $10.4 billion retirement system’s board approved a pacing plan at its January meeting, after the plan last month was considered by its investment committee.

The plan earmarks $270 million for seven master custody accounts within its portfolio.

SBCERA plans to commit $15 million to Ares Management, $25 million to Gramercy, $100 million to Industry Ventures, $30 million to Kayne Anderson, $70 million to Pathway Capital and $30 million to Tennenbaum.

San Bernardino County structures its separate accounts as master custodial accounts, in which it has the ability to invest across a manager’s funds, co-investments and direct investments.

All the master custodial accounts that are slated for new commitments also received commitments in 2018, in varying amounts.

Compared with 2018, Gramercy and Tennenbaum are in line for a reduction in 2019, while Pathway and Industry Ventures are poised for an increased commitment.

One master custodial account that received funding in 2018 but has no planned 2019 commitments is with Partners Group, which received a $40 million commitment last year.

The remaining $230 million will be allocated to new opportunities as they arise, according to SBCERA.

SBCERA has a 16 percent target allocation. It committed $500 million in 2018 and $395 million in 3017.

Action Item: Read more about SBCERA’s pacing plan here