ACERA ends up doubling allocation to PE

Originally falling short of a 15% target to private equity, the California-based pension fund has now surpassed it.

The Alameda County Employees’ Retirement Association (ACERA) has increased its allocation to Private Equity and Alternatives Return Leading Strategies (PEARLS) to 18 percent, according to the minutes of its investment committee meeting this month.

At the same meeting, the board approved a maximum $40 million investment into The Catalyst Capital Group’s Fund V.

The fund’s allocation to private equity and alternatives at the end of 2014 stood at 8.9 percent, equivalent to $602 million, and below its target of 15 percent. The fund has total investment assets of $6.8 billion.

“The increase [of] Private Equity and Alternatives Return Leading Strategies (PEARLS) to 18 percent from 15 percent was made to increase the diversification of the overall fund and to reduce traditional equity exposure,” ACERA communication manager Michael Fara wrote to PEI in an email.

The decision was made on the basis of three investment packages presented to the board by Strategic Investment Solutions. The fund will also increase its real estate allocation from 6.6 percent at the end of 2014 to 8 percent.