The $14.4B Sacramento County Employees’ Retirement System has approximately $100M in dry powder left to allocate to its restructured private credit portfolio, after committing to senior debt and liquid credit opportunities this year.
During a recent meeting, SCERS’ board approved a commitment to Comvest Credit Partners VII, a closed-end direct lending fund — marking a new relationship for the pension system. The fund was launched in April 2024 and held a recent close on $2B in March this year. Other investors in the fund include the Illinois Municipal Retirement Fund and the New York State Teachers’ Retirement System.
The pension plan currently allocates 5.1% of its investment portfolio to private credit, which is below its target allocation of 9%. Earlier this year, the pension plan combined both its public and private credit into a singular credit asset class, increasing its combined targets from 7%.
SCERS also disclosed a commitment of $50M to Diameter Dislocation Fund III, a liquid credit fund focused on stressed and distressed investments driven by cyclical or macroeconomic dislocations.
As of June 30, 2025, the total portfolio posted a 6% return, beating its 5.5% benchmark. The results of SCERS’ liquidity study will be presented at its upcoming September board meeting.
