The Stanislaus County Employees Retirement Association (StanCERA) plans to kick off searches for private credit, private equity and real estate next year, as a result of a new asset allocation policy the pension recently adopted.
The $1.8 billion pension plan, which almost doubled its target to private credit from 7.5 percent to 14 percent, will launch a search for private credit managers in January. Finalists for the private credit mandate will be interviewed at a February meeting.
The private equity and value-add real estate searches will be started in February, with finalist presentations to be made in March. The new asset allocation calls for a new 5 percent target each to private equity and value-add real estate (about $90 million per brief).
Verus, the pension fund’s Seattle-based investment consultant, will assist with the searches. Verus also recommended the new asset allocation mix at a May board meeting, saying that it offers the best long-term risk/reward option for StanCERA. Other changes to the policy involved establishing a 3 percent allocation to US Treasuries and an 18 percent target to short-term government credit. US large-cap public equities will be dropped to 12 percent from 30.5 percent.
Stanislaus County’s existing private credit investments include two asset-based lending funds managed by Raven Capital Management, as well as Medley Management’s Opportunity Fund II, according to PDI Research & Analytics.