Insight

SJCERA outlines 2021 private equity pacing plan

The US public pension has a private equity target of 5% to 6% of its investment portfolio.

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Institution: San Joaquin County Employees’ Retirement Association
Headquarters: Stockton, California
AUM: $3.52 billion
Allocation to private equity: 4.5%

San Joaquin County Employees’ Retirement Association disclosed its private equity pacing plan at its May 2021 retirement board meeting. The pacing plan recommendation was presented by its investment consultant, Meketa Investment Group.

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Highlights from SJCERA’s May 2021 retirement board meeting:

  • SJCERA will commit $50 million to private equity across two or three partnerships annually with approximately $25 million committed to each investment opportunity.
  • The pension aims to reduce portfolio concentration by diversifying across both vintage year and firm. It would also incorporate public market volatility and total portfolio growth in its decision making.
  • In 2020, SJCERA approved one private equity commitment of $50 million to Stellex Capital Partners II. This was the pension’s first commitment to fund manager Stellex Capital Management.
  • Since establishing its private equity program in 2013, the pension has committed approximately $282 million across eight partnerships. Its since-inception net IRR is 13.2 percent.
  • As of September 2020, the market value of SJCERA’s private equity portfolio was $158.3 million, accounting for approximately 4.5 percent of its full investment portfolio. The pension’s private equity target is 5 percent to 6 percent.

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SJCERA’s chief executive officer is Johanna Shick. According to the pension’s website, Shick joined the pension in January 2017. Prior to joining, she worked as an assistant administrator/chief benefits officer for the San Diego County Employees’ Retirement Association. She also held management roles with the Washington State Department of Retirement Systems.

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