FROM: Don Pierce, Chief Investment Officer
SUBJECT: Informational: 2025 Private Equity Pacing Plan Update
RECOMMENDATION:
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2025 Private Equity Pacing Plan Update.
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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
Inc...
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