Fresno seeks private equity and credit manager

The California retirement system wants to hire a firm to handle both private equity and credit strategies in a separate account format to get up to its 14% target allocation.  

The Fresno County Employees' Retirement Association (FCERA) is looking for a private equity and credit separate account manager.

The $4 billion California pension, which has a 14 percent target to the asset classes, is underweight in the area with current invested assets at about 4.3 percent, Donald Kendig, retirement administrator at FCERA, told Private Debt Investor .

The pension fund's consultant, Seattle-based Verus, has been directed to initiate the search. The firm will handle about $400 million across both private equity and credit.

Hiring such a manager is a quicker and more efficient way for the pension fund to get up to its target, Kendig said, and certain administrative tasks can be outsourced.

“We would like to outsource the accounting and legal to simplify the process for staff, as we do not have a substantial amount of accounting staff to handle the increased workload,” Kendig said.

“We are also interested in a manager that could get us vintage year diversification looking backwards, through secondaries, on an opportunistic basis.”

The pension fund's specific targets to private credit and private equity are at 8 percent and 6 percent, respectively. FCERA's existing investments in private credit include funds managed by CarVal Investors, GSO Capital Partners, KKR and Oaktree Capital Management, according to PDI Research & Analytics.

Recent private equity investments included funds managed by Warburg Pincus and Hamilton Lane.