FROM: Don Pierce, Chief Investment Officer
SUBJECT: Informational: 2025 Private Equity Pacing Plan Update
RECOMMENDATION:
title
2025 Private Equity Pacing Plan Update.
body
BACKGROUND:
SBCERA Board of Retirement approved the 2025 Private Equity (“PE”) Pacing Plan in January 2025 with a budget of $650 million including an allocation of $250 million to existing MCA relationships, and $400 million in dry-powder. A breakdown of the PE Pacing Plan is provided in Table 1.
Through June 2025, the investment team has approved 7 transactions committing $97.4 million across primary funds, co-investments, and secondary transactions.
Since 2020, the private equity program budget has averaged $600 million with an average yearly commitment of $413.8 million to PE opportunities. During the same period, SBCERA has received an average of $347 million in annual distributions including $92.9 million YTD as of May 31, 2025.
Since inception in 2004, SBCERA’s PE allocation has generated a net 10.56% IRR and 1.61x multiple on $4.9 billion of commitments as of Q3 2023. For the same period SBCERA has received distributions of $4.2 billion or a DPI of 0.97x.
Table 1: Private Equity Budget and Allocations for 2024-2025
|
Manager Allocations |
2024 |
2025 |
|
Total PE Budget |
$575 MM |
$650 MM |
|
|
|
Base |
YTD Add |
|
Adams Street Partners (ASP) MCA |
$75 MM |
$75 MM |
- |
|
ASP Emerging Managers MCA |
- |
- |
$50 MM |
|
Industry Ventures MCA |
$50 MM |
$50 MM |
- |
|
Kayne Anderson MCA |
$0 MM |
- |
- |
|
Partners Group MCA |
$75 MM |
$50 MM |
$50 mm |
|
Pathway Capital MCA |
$100 MM |
$75 MM |
- |
|
Patria SOF V |
$75 MM |
- |
- |
|
Allocated PE Budget |
$375 MM |
$250 MM |
$350 MM |
|
Unallocated PE Budget |
$200 MM |
$400 MM |
$300 MM |
Table 2: SBCERA MCA Net Performance as of 12/31/2024:
|
|
Since Inception (net) |
|
|
Manager |
IRR |
Multiple |
DPI |
NAV ($ Million) |
|
Adams Street Partners MCA Fund 1 Inception: 9/2020 |
11.2% |
1.31 |
0.18 |
$158.8 |
|
Adams Street Partners MCA Fund 2 Inception: 9/2023 |
21.0% |
1.15 |
- |
$54.8 |
|
Ares MCA Inception: 1/2014 |
8.7% |
2.79 |
0.65 |
$773.6 |
|
Industry Ventures MCA Inception: 9/2013 |
16.8% |
1.70 |
0.59 |
$539.6 |
|
Kayne Anderson MCA Inception: 9/2017 |
12.6% |
1.35 |
0.69 |
$410.7 |
|
Partners Group MCA Inception: 6/2013 |
9.9% |
1.59 |
0.84 |
$747.5 |
|
Pathway Capital MCA Inception: 3/2014 |
18.5% |
1.70 |
0.70 |
$709.3 |
|
Waterfall MCA Inception:11/2018 |
17.8% |
1.83 |
1.26 |
$40.0 |
BUDGET IMPACT:
None.
STRATEGIC PLANNING GOAL/OBJECTIVE:
Prudent Fiscal Management
STAFF CONTACT:
Amit Thanki
ATTACHMENTS:
Exhibit A: 2025 PE MCA Deal Flow (first half)
Exhibit B: Historical PE Budget Allocation
Exhibit C: NEPC Private Equity Outlook & Review