Institutional Investor News
SCERS’s Brian Miller: Consistency and Conviction Drive Capital Allocation
The $15B Sacramento County Employees Retirement System (SCERS) continues to stress the importance of disciplined, long-term investing under senior investment officer Brian Miller, who emphasized process, conviction, and adaptability in today’s volatile markets.
Speaking on the How I Invest podcast, Miller reflected on lessons learned during his 16 years at Tukman Grossman Capital Management, where he first honed his skills in value investing. “One of the things that made Tukman so successful was their consistency,” he said. “They followed a really consistent approach over a long number of years that led them to fill a niche, [even] in the face of headwinds in the market.”
Miller underscored the value of focusing on fundamentals and compounding, “finding a great company, attractive opportunities, and entry points, then holding those things long term, and letting the value of those investments compound.”
“You’re not as concerned in the day-to-day price movements,” he explained, “because you’re looking at the future potential for these companies several years out.”
Transitioning from asset manager to allocator brought a new set of challenges for Miller. “You really have to shift your focus from individual company analysis to portfolios and how you’re evaluating managers,” he said. “That was the biggest shift for me… understanding their decision-making, their process or philosophies to evaluate how they’re making their decisions, versus the individual stocks.”
This allocator mindset now informs the construction of SCERS’s roughly $6B public equity book. Miller detailed SCERS’s evolution in portfolio construction since he joined in 2017. The system moved from a 50/50 split between domestic and international equities toward greater US exposure, primarily by adding global strategies. “I’m a big believer in adding incremental returns wherever you can, and I think active management still has the ability to do that,” he said. Yet he cautioned against over-diversification: “Ultimately, you don’t want to diversify your managers to the point where you’re just holding the market.”
The pension fund’s 7% allocation to absolute return strategies remains a cornerstone of its diversifying bucket, complementing growth and real-return allocations. These strategies aim to provide positive returns with low correlation to traditional markets. “We don’t view it as a tail-risk component… It is really meant to deliver positive returns,” Miller said. “For us, over the trailing five years, delivering a 5% to 6% return with low volatility, low downside, good risk-adjusted returns certainly fits the bill.”
Looking back on his career, Miller offered advice to emerging investment professionals. “Be a continual learner… [and] be forward-looking,” he said. “Figure out ways to be on the front end of large trends. The way to do that is by having conversations with people, and that helps build your network [and] build your understanding of the market.”
Searches
Plymouth County Launches $55M Multi-Asset Credit RFP
Plymouth County Retirement Association has issued an RFP for an active, below-investment grade, multi-asset credit manager to run a mandate of approximately $55M. Eligible managers must have at least $10B in total AUM, $1B in the multi-asset credit strategy, a five-year track record, and offer monthly or better liquidity, with bids due October 17 and final proposals due by October 20, at 12 p.m., Eastern time. Source
Lexington Retirement Kicks Off Global Equity Manager Search for $30M
The Town of Lexington Retirement System opened a search for an experienced global equity manager to oversee approximately $25M to $30M, replacing an expiring strategy. The pension will accept responses until October 31, at 12 p.m., Eastern time, with Meketa assisting in the search process. Source
Contra Costa Approves StepStone as Private Markets Consultant
Contra Costa County Employees Retirement Association affirmed a committee recommendation to retain StepStone as its private markets investment consultant, awarding the firm a consolidated oversight of the asset class comprising private equity, private credit, real assets/infrastructure, and real estate. The move concludes an RFP process first issued in January, where Meketa was selected as general investments consultant. Source
Investments
SFERS Sets $550M for Real Assets, $1.1B for PE in Commitment Pacing
San Francisco Employees’ Retirement System (SFERS) outlined its commitment pacing plans, including $550M for real assets and $1.1B for private equity. The pension is targeting a 10% allocation for real assets split into 70% real estate, 20% infrastructure, and 10% natural resources, and a 20% allocation for the private equity umbrella, of which half will consist of buyouts, with the remaining half split evenly between venture capital and growth equity. Source
NY State Common Discloses $845.7M in July Commitments
New York State Common Retirement Fund reported commitments it made in July totaling $845.7M, including $400M to RFM-NYSCRF Affordable Housing Fund, $250M to KKR Empire PE Co-Investments, $110M to Frazier Life Sciences XII, $40M to PVP Fund V, $30M to Primary Select Fund IV, and $15.72M to Wavecrest Growth Partners III. The allocations were made as part of the pension’s private equity, real estate, and emerging manager programs. Source
Texas ERS Commits $175M to Infra, RE Funds
The Employees’ Retirement System (ERS) of Texas has reportedly made $175M in commitments across infrastructure and real estate, comprising $75M to I Squared Capital’s Growth Markets Infrastructure Fund II, $40M to KKR Asia Pacific Infrastructure Investors III, $35M to Actis Energy 6, and $25M to 1SP ERS PREEM III. Source
San Mateo OKs $15M in Left Lane’s Third Venture Fund
San Mateo County Employees’ Retirement Association approved a $15M commitment to Left Lane Capital Partners III, adding to its venture capital portfolio within the Growth category, in a decision made at the pension’s August board meeting. Source
IFM Investors Plans to Shutter AUD 1B PE Business Despite Strong Returns
IFM Investors, owned by 15 Australian super funds and a UK pension, is reportedly winding down its AUD $1B ($660M) private equity business, citing challenges scaling the strategy to meet the needs of Australia’s AUD $4.3T ($2.84T) superannuation system. Despite the division’s reported 33% net IRR since 2019, the firm said it will work over the next four to five years to exit portfolio holdings and focus its growth efforts on larger-scale asset classes such as infrastructure, listed equities, private credit, and real estate. Source
Wealth Channel News
Survey Signals Rising Optimism in Asia’s Wealth Sector
Asia’s private-wealth management industry is brimming with confidence, with the vast majority of private wealth management practitioners expecting sustained growth ahead.
In a Bloomberg Intelligence survey, which polled 100 senior professionals evenly split between Hong Kong and Singapore, 85% of respondents said they expect AUM and net new money to grow by at least 6% annually over the next five years. A quarter of respondents anticipate double-digit gains, signaling widespread confidence that structural tailwinds will lift the region’s wealth hubs.
The report projects Hong Kong will overtake Switzerland as the world’s largest cross-border wealth hub in 2025, overseeing some $2.9T. Together, Hong Kong and Singapore are expected to see cross-border wealth rise by roughly 12% annually over the next five years, outpacing the global average of 10%. That sets the stage for intensified competition and opportunity in Asia’s key gateways.
Mainland China looms especially large. Respondents expect 30% of new clients over the next three to five years to originate from China, up from 26% today. The Middle East is also flagged as an emerging client source, though from a smaller base. Rising allocations from these markets could reshape product demand, particularly for private equity, hedge funds, and digital assets – asset classes respondents expect to attract more client capital in the year ahead.
Risk appetite is shifting as well. Half of those surveyed said clients had become “higher or much higher” in risk tolerance over the past 12 months. That dovetails with the industry’s expectations that growth equity, alternatives, and other high-beta strategies will benefit disproportionately from inflows.
Technology, meanwhile, is set to be both an enabler and a cost challenge. Nearly three-quarters of respondents cited tech as among the top drivers of new money, with 57% pointing to artificial intelligence as having the greatest impact on client insights. Yet the same survey highlights technology as the biggest contributor to rising costs, as firms invest heavily in platforms and data infrastructure. Encouragingly, only 3% foresee headcount reductions linked to AI, suggesting managers view it as augmentative rather than disruptive.
New RIAs
Northwestern Mutual Veterans Register RIA in VA
Northwestern Mutual Investment Management veterans Repp H. Lambert II and Roger E. Crook Jr. registered LCW Services, d/b/a Altura Wealth Advisors, as an independent RIA in Virginia Beach, VA. The duo is currently affiliated with Purshe Kaplan Sterling Investments. The firm has engaged Charles Schwab as its custodian. Source
Commonwealth Trio Launches RIA in TX
Three former Commonwealth Financial advisors launched Schlegel Dunn as an independent RIA in Plano, TX. The firm is led by Steven T. Schlegel as CEO, with Scott J. Schlegel serving as CFO, and Brent J. Dunn as chief compliance officer. Source
M&A
RIA M&A Sets Record in Q3 as PE Leads Wave
DeVoe & Co. tallied 94 third-quarter RIA M&A deals, surpassing the previous peak of 81 transactions in the fourth quarter of 2024 and marking a jump from 73 deals in Q2 this year. There were 32 deals in July, 25 in August, and 37 in September. So far, 242 deals have been announced through the first nine months of the year, putting the industry within striking distance of 2024’s full-year total of 272. The wave of consolidation is being led by mid-sized and large firms, which now account for more than half of all deals, and PE-backed consolidators are fueling the bulk of transactions. Source
People Moves
$165M SC-based Osaic Team Joins RayJay
Charleston, SC-based practice R.E. Baxter and Associates, which was affiliated with Osaic, has joined Raymond James’ independent advisor channel Raymond James Financial Services. The team – led by Kevin Brown – manages $165M in client assets. Source
Hightower Duo Joins Robertson Stephens in RI
Two former Hightower advisors joined Robertson Stephens in South Kingstown, RI. Carol Nulman and Richard Lewis, who are managing directors at their new firm, were previously part of The Nulman Group, which was affiliated with Hightower. Source
Raymond James Hires Divisional Director in UK
Raymond James Investment Services appointed Chris Cahill as director of its branches division. Cahill, who is based in the UK, was most recently head of private client consultancy and advice at St James’s Place Wealth Management. Source
Julius Baer Names ME Head of Investment Advisory
Swiss bank Julius Baer named Edouard Hoepffner head of investment advisory for the Middle East. Hoepffner, who will be based in Dubai, was previously senior managing director and head of investment services for Asia at Union Bancaire Privée in Singapore. Source
Other News
Family Offices Look to Boost Private Market Allocations
More than 75% of respondents to a family office survey by Institutional Investor plan to increase or maintain private market allocations in 2026, and 37% expect higher returns over the next five years. Thirty-four percent of respondents said they currently allocate more than 40% to PE or venture capital. Only 31% invest directly, while just over half avoid private credit and slightly more don't invest in real estate funds. Source
Private Fund News
Blackstone’s Third Asia Buyout Fund on Track to Reach $12.9B Hard Cap
Blackstone is reportedly on track to reach the $12.9B hard cap for Blackstone Capital Partners Asia III, the latest fund under its Asia buyout strategy.
Citing people familiar with the matter, Bloomberg reported that the fund, which has already surpassed its $10B target, is scheduled to close in the first quarter of 2026. Its predecessor fund, Blackstone Capital Partners Asia II, closed in 2021 at $11B, and one of the unnamed sources said 90% of the fund’s investors returned for the third fund with increased commitments.
As of July 3, Asia III and the related Blackstone Capital Partners Asia III (LUX) had raised $8.01B from 67 investors, according to filings with the SEC. Opened for subscription on February 3, the funds are marketed with the assistance of Compass Group Global Advisors, KB Securities Co., Mirae Asset Securities Co., and Kiatnakin Phatra Securities PCL, with the allocation for sales commissions at $17M.
So far, Fund III has received commitments totaling $650M from CPP Investments, Minnesota State Board of Investments, and Houston Firefighters' Relief and Retirement Fund, according to Dakota data. Blackstone indicated in its second-quarter results that inflows to the fund amounted to $3.5B in the quarter alone.
Previous press reports on Asia III indicated that a majority will be deployed in India, with substantial allocations also planned for Japan and Australia. South Korea and Singapore are also expected target destinations for the fund.
Shortly before the firm celebrated its 20th anniversary of doing business in India earlier this year, Amit Dixit, head of Asia for Blackstone private equity, outlined the core of the firm's current India investment thesis. "The emergence of India, not only as an important destination for investments, but also a big destination for realizations, is driven by the IPO markets in India. There is only one market globally that has outperformed [the] S&P 500, and that's India," he said.
Dixit went on to explain that digital infrastructure – between the needs of a growing and wealthier consumer base and the hardware and software required to address those needs, as well as to support AI-driven commercial expansion – will be central to Blackstone's future investments in the country. "I think India is getting ready for the next digital revolution," he said, adding, "There's a lot of opportunity not just to buy, but to build."
Meanwhile, a continued focus in Japan comes as little surprise. Blackstone has deep ties to the country through Nikko Securities, which took a 20% stake in the firm just one year after its launch, in 1988. Nikko was also one of the earliest investors in Blackstone's very first private equity fund and helped it source Japanese investors. And though Blackstone long ago redeemed Nikko's stake back in 2000, its commitment to Japan remains strong.
"As Steve Schwarzman likes to say, without Japan there would be no Blackstone," Joan Solotar, Blackstone's global head of private wealth, told Bloomberg in June. "So we see a lot of opportunity, because investors here want the same thing as investors anywhere else. They want good returns, growth, higher income."
Private Equity
Brookfield Seeking Fresh Capital for $5B Catalytic Transition Fund
Brookfield Asset Management is reportedly seeking fresh funding from a key LP for its $5B Catalytic Transition Fund. The fund, which targets clean energy and transition assets across emerging markets in India, had a first close of $2.4B in 2024 with a $1B anchor investment from climate capital catalyst ALTÉRRA and smaller commitments from other investors including Caisse de dépôt et placement du Québec (CDPQ), GIC, Prudential, and Temasek. Source
August Equity Closes Fund VI at £350M
Lower-middle-market buyout firm August Equity closed Fund VI at its increased hard cap of £350M ($471.8M), becoming the firm’s largest fund to date. The fund received commitments from investors including US endowments, Asian pension funds, and investment groups from the Nordics, the UK, continental Europe, and Southern Europe. Source
AfricInvest Europe Raises €50M for Third-gen French African Fund
AfricInvest Europe, a subsidiary of the African investment platform AfricInvest Group, said its AUM reached €150M ($176.1M) after the €50M ($58.7M) initial closing of its third-generation French-African Fund. The fund acquires minority stakes in French small and medium-sized companies with a link to Africa, targeting 10 to 12 investments with an allocation between €5M and €10M ($5.9M and $11.7M) for each transaction. Source
Other Funds
Stonepeak Raises $1B for Second Asia-focused Infra Fund
Stonepeak Infrastructure Partners has so far raised $1B for its second Asia-focused infrastructure fund, according to media reports. Stonepeak Asia Infrastructure Fund II, which invests in infrastructure across the communications, transportation, logistics, and energy sectors, was earlier reported to be targeting $4B, which would make it larger than its $3.3B predecessor, Stonepeak Asia Infrastructure Fund. Source
Incus Capital Halfway-through €800M Fundraise Under European Credit Strategy
Madrid-based real assets private credit specialist Incus Capital said it has reached the halfway-mark of its planned €800M ($939.5M) fundraise for European Credit Fund V with support from new and existing investors. With a €1B ($1.17B) hard cap, the fund will provide asset-based loans, targeting exposure to infrastructure, real estate, and alternative assets. Source
Royal London Launches Private Healthcare REIT Targeting UK Assets
Royal London Asset Management Property launched a private healthcare REIT dedicated to the healthcare infrastructure in the UK with a reported fundraising target of £650M ($876M). The asset manager, a part of Royal London, the UK's largest mutual life and pensions company, intends to use the REIT to attract third-party capital and purchase corporate entities. Sources 1, 2
Preservation Equity’s Fund 3 Closes at $156M
Preservation Equity Fund Advisors completed the fundraise for Preservation Equity Fund 3 with $156M in capital commitments earmarked for the preservation of affordable housing across high-rent and high-growth US markets. The fund closed with commitments from 17 investors, two-thirds of which were existing investors. Source
India-focused Ironclad AM Launches Ironclad Ventures
Ironclad Asset Management launched Ironclad Ventures with INR 1B ($11.3M) of seed capital and a greenshoe option of the same amount. The Securities and Exchange Board of India-approved Category 1 fund will target employee stock ownership plans, seeking exposure to 30 to 40 startups across the financial technology, consumer, software as a service, and digital enablers investment spaces, allocating INR 10M to INR 40M ($113K to $451K) for each company. Source
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