The Alameda County Employees Retirement Association is proposing a new policy to streamline the process for rolling its private credit investments into continuation funds, according to a report by Buyouts Insider.
At an investment committee meeting on 7 August, ACERA proposed granting its private credit investment staff more authority to transition existing assets into continuation funds, following recommendations from the pension scheme’s financial consultant. This policy is pending final approval by the full retirement board.
The proposed change aims to expedite decision-making, allowing staff to act quickly on continuation fund opportunities rather than selling assets outright.
This policy shift comes shortly after ACERA raised its target allocation for private credit from 4% to 6.8% in July, with private credit now comprising 4.8% of its total fund allocations. Additionally, the fund increased its benchmark return for private credit from 6.35% to 6.6% over a 10-year period, reflecting improved performance in this asset class.
