SBCERS to lower allocation to PE by 2027

Name: Santa Barbara County Employees’ Retirement System
HQ: Santa Barbara, US
AUM: $3.7 billion
Allocation to private equity: 14.26%

Santa Barbara County Employees’ Retirement System is looking to decrease its exposure to private equity by 2027, according to a recent presentation from Hamilton Lane.

Currently, SBCERS targets an allocation of 14.2 percent to private equity, but cites three different scenarios for a decrease.

In the first scenario, $65 million in annual commitments would see them target a 13.5 percent allocation in 2023, with an aim to decrease this to 8.7 percent by 2027. The second option would be to have $75 million in annual commitments to again target a 13.5 percent allocation, but with an allocation of 9.1 percent by 2027. The pension’s third scenario would be to have $85 million in annual commitments to target a 13.6 percent allocation in 2023, with a goal of decreasing this to 9.5 percent by 2027.

All of these projected private equity allocations would assume a 7 percent total plan growth rate.

SBCERS also revealed two new commitments to their private equity portfolio in their meeting materials, committing $10 million to both GTCR Fund XIV – a diversified buyout fund in North America – and STG VII, a mid-market buyout fund that focuses on investment in TMT.

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