KCERA Invests $25M in Private Credit, Terminates Fixed Income Manager

The Kern County Employees’ Retirement Association (KCERA) approved a $25M commitment to private credit and terminated a manager from its fixed income portfolio following changes to its related target allocation, according to recently published board materials. 

KCERA said it approved a $25M investment in Magnetar Structured Solutions Fund, a structured private credit fund strategy. The commitment follows closely on a $25M commitment KCERA made in August to opportunistic private credit fund Fortress Credit Opportunities VI, according to Dakota data.

The board also voted to terminate two Western Asset Management Company fixed income mandates, Western Asset Core Plus and Western Asset High Yield. KCERA said it arrived at the decision after assessing Western Asset’s mandates relative to changes in target fixed income exposures, which the pension adjusted to 25% from 24% in August 2023. The pension said it is conducting a manager search and will bring recommendations to future meetings.

According to Dakota data, KCERA manages $5.8B in assets and as of July 31 allocated 5.9% to private credit and 16% to fixed income.

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