SDCERS approves $125m in private equity commitments for 2021

The system will its increase its allocations to private equity in 2022.

Institution: San Diego City Employees’ Retirement System
Headquarters: San Diego, United States
AUM: $8.3 billion
Allocation to Alternatives: 27.9%

San Diego City Employees’ Retirement System slowed its target investment pace for private equity in response to market volatility from covid-19, according to its private equity and infrastructure investment plan.

Other highlights from SDCERS’ annual investment plan include:

  • The system plans to commit $125 million to private equity in FY 2021. It plans to make individual investments between $5 million and $30 million and co-investment commitments of up to $15 million, according to the investment plan.
  • Starting in 2022, SDCERS will increase its average annual commitment to private equity to $150 million-$200 million to reach its preferred exposure for private equity and infrastructure. The pension anticipates that it will invest a combined $475 million over the next three years.
  • Seeking strong returns, the pension will mainly invest in lower- to mid-market funds that have total investments of less than $2 billion.
  • SDCERS has a target private equity exposure of 6.5 percent. The pension’s new pacing plan allows it to maintain its target for the next two to three years, according to the investment document.
  • SDCERS will make its private equity commitments through its separate account with GCM Grosvenor.

Elizabeth Crisafi serves as SDCERS’ chief investment officer, a position she’s held since 2009. She has been with the pension for nearly 13 years, according to her LinkedIn profile. Prior to joining SDCERS, Crisafi was the president and chief executive of Crisafi Investment Management.

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