Santa Barbara Reviews 2024 Private Markets Plans

The Santa Barbara County Employees’ Retirement (SBCERS) recently reviewed the 2024 strategic plans for their Private Equity, Private Real Return, and Private Real Estate portfolios with investment consultant Hamilton Lane.

In private equity, SBCERS is targeting $55 million to $75 million in commitments focusing on core existing managers, while evaluating new managers. New commitments will be considered to SMID Buyouts and/or Venture Capital/Growth equity strategies. Geographically, SBCERS is looking to focus on North America while considering adding to its European exposure.

The Private Real Return Strategic Plan has a commitment target of $55 million to $70 million. The plan is to commit to core manager relationships while considering new managers. $10 million investment sizes are being considered.

In a presentation from Hamilton Lane, $55 million to $70 million will be targeted to Private Real Estate across five to seven closed-end, non core funds in $10 to $15 million commitments. They are considering new commitments to value-add and opportunistic managers and are also targeting open-end, equity funds in the US within the core/core plus portfolio. Geographically, the plan is to continue to overweight North America, but will seek exposure in other developed markets as well.

As of December 31, 2023, the $4.25 billion pension fund has an actual and target allocation to private equity of 13.5% and 10% respectively. The actual and targets to the Real Return composite was 14.1% and 15%. And the actual and targets to Real Estate was 10.9% and 10% respectively.

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