Gregg Gethard
Liquidity from the system’s PE portfolio dropped off over the past two years.
Many public pensions face governance issues when considering continuation fund opportunities.
The system backed off a planned secondary sale after prices came in too low.
The system joins other large LPs in making commitments to the smaller end of the market.
NEPC recommended San Bernardino commit $575m to private equity over the next two to three years.
The public pension fund is nearing its target allocation.
LPs remain overstressed, overworked and overburdened.
The system is also looking to ramp up its private credit and real assets programs.
The system is like many other LPs who have reduced pacing schedules due to overallocation to the asset class.
The system sees inefficiencies – and deals to be had – at the lower end of the marketplace.