The $27B Orange County Employees Retirement System (OCERS) approved a $350M real assets pacing plan that leans into infrastructure, energy, and a new push into timber and agriculture — sectors the fund expects to gain relevance as demand for power, commodities, and critical minerals accelerates.
OCERS has 0% exposure to timber and agriculture today, but, following consultant Aksia’s guidance, expects that share to reach a 2% target over time.
“Natural resources fundraising is expected to be subdued despite stronger infrastructure activity,” said Kevin R. Bonse, vice-president of real assets — infrastructure and natural resources, and Trevor Jackson, managing director on Aksia’s portfolio advisory team, in the meeting materials. They said stronger energy-commodity dynamics will support cash flow for traditional energy strategies even as fewer active funds “may cause annual fundraising to fluctuate,” adding that rising demand for energy infrastructure and industrial inputs should lift critical minerals and commodities.
The pacing plan for next year has earmarked four to six commitments of $50M to $100M each. OCERS’ 2025 pacing plan was $450M; that level holds through 2029 before stepping down to $400M annually from 2030 to 2035.
Bonse and Jackson said the range allows OCERS to be a meaningful limited partner while staying flexible enough to access niche strategies and hard-to-enter funds. Pacing decisions will incorporate deployment targets, fund-size and concentration limits, desired strategy exposure, and staff capacity for general partners relationships.
As of Sept. 30, OCERS held 3.5% in infrastructure, 2.1% in energy and 0.02% in timber/agriculture. In 2023, the board previously lifted the overall real assets allocation to 6%, with a split of 4% to infrastructure and 2% to energy.
Bonse and Jackson noted elevated infrastructure dry powder, saying core and core-plus funds remain more selective than value-add or growth-oriented managers — a dynamic they expect to persist amid steady fundraising and higher rates.
Co-investments remain a growing lever for OCERS to speed deployment and reduce fees, noted the meeting materials.
In 2025, the fund committed $167.5M across four deals, including two co-investments — EnCap DE V Co-invest and EnCap PE Co-invest. Pipeline opportunities include a $100M power fund in early 2026, a structured capital infrastructure vehicle for up to $75M in late 2025 and a $75M energy transition fund in early 2026.
OCERS’ latest co-investment — an $11.5M EnCap energy-transition deal — fits within its limits of up to $20M per deal and $85M annually. Staff said the risk profile aligns with a solar project and that EnCap’s track record gives it potential to meet or exceed a 1.8x gross multiple. Key risks include regulatory exposure and concentration, though the CIO said EnCap’s expertise helps manage both.
The real assets portfolio returned 5.1% for the year ended June 30, 2025 and 14.4% over five years, with gains driven by distributions from EnCap Energy Capital Fund XI and Kayne Energy Income Fund II and appreciation in Blackstone Infrastructure Partners and Warwick Partners IV.
