The $14.5B Sacramento County Employees’ Retirement System has earmarked $1.2B allocations to private equity, credit, real estate, and other real assets fund for next year.
According to materials from a recent board meeting, the pension plan highlighted its 2026 investment plans.
Within credit, the pension plans to allocate $300M to five public and/or private credit funds.
This will focus on diversified direct-lending strategies, niche and specialty lending/leasing strategies, and flexible opportunistic public credit strategies. Further, the pension stated that it would focus on follow-up investments with existing managers and strategies.
As of June 30, the pension plan’s allocations to public credit and private credit stands at 5% and 1.9% against target allocations of 5% and 2%.
Within private equity, the pension plan aims to make seven commitments totalling up to $300M. SCERS would prioritize existing managers and strategies, however, will be eyeing specialist buyout funds and observe secondary pricing for potential fund sales, disclosed the meeting materials.
As of June 30, the pension plan allocated 11% to private equity, equal to its target allocation.
Within real estate, the pension plan aims to allocate up to $300M with $65M each to two core funds and $50M each to three non-core funds. It will also “rebalance the U.S. core open-end portfolio to bring the strategy and geographic mixes within targeted ranges,” while reconsidering the number of core diversified funds in the portfolio.
Within non-core real estate, SCERS will exclusively focus on value-added funds. As of June 30, the pension plan allocates 8.6% to its real estate sleeve against a target allocation of 9%.
Lastly, within real assets, the pension fund aims to commit to four funds for a total of up to $220M. In the materials, SCERS also disclosed it will focus on existing managers and strategies, with a focus on midsize to larger scale infrastructure strategies, regulated assets, and social infrastructure strategies.
As of June 30, SCERS allocated 6.9% to private real assets against a target allocation of 7%. Additionally, the pension fund is set to issue a general consultant request for proposals in early 2026, following the expiration of alternative assets consultant Cliffwater’s contract.
