The San Diego City Employees’ Retirement System (SDCERS) is deliberating over 2025 target allocation pacing plans, with the board set to vote on a recommendation to invest $200M in private equity and $55M in infrastructure, per materials from its November 14 board meeting.
A memo from the pension’s CIO Carina Coleman to the investment committee disclosed that staff is recommending a $200M allocation to private equity in 2025. The allocation would be split on a 60% to 40% ratio between managers GCM Grosvenor and StepStone, respectively, to rebalance the “unintended tilt toward growth equity” and favor investments in buyouts under the PE policy. The overall proposed target would also account for the pension’s overweight to private equity, while still maintaining exposure in the market.
Additionally, staff, in agreement with GCM and StepStone, also recommended a $55M allocation to infrastructure for 2025, with plans to eventually include more core-plus funds to reduce risk in the asset portfolio over time.
GCM and StepStone assisted the pension in reviewing for the 2025 pacing plan of both asset classes. GCM proposed managing $120M in private equity and $25M in infrastructure, while StepStone modeled commitments of $80M for private equity and $30M for infrastructure. Per Dakota data, SDCERS oversees total plan assets of approximately $10.5B.
