FROM: Don Pierce, Chief Investment Officer
SUBJECT: Informational: 2024 Private Equity Pacing Plan Update
RECOMMENDATION:
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2024 Private Equity Pacing Plan Update.
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BACKGROUND:
SBCERA Budget Update
SBCERA Board of Retirement approved the 2024 Private Equity (PE) Pacing Plan in January 2024 with a budget of $575 million, an allocation of $275 million to existing MCA relationships, and $300 million of anticipated, but unallocated dry-powder to make investment decisions throughout the year. A breakdown of the PE Pacing Plan is provided in Table 1.
Through June 2024, the investment team has approved 18 transactions committing $176.5 million across primary funds, co-investments, and secondary transactions. More information on this is included in Exhibit A. In addition, the team performed due diligence on the Patria SOF V secondary focused fund and will be looking to commit $75 million at the conclusion of legal due diligence.
Since 2020, the private equity program budget has averaged $590 million with an average yearly commitment of $422 million to PE opportunities. During the same period, SBCERA has received an average of $805 million in distributions including $97 million YTD 2024.
Since inception in 2004, SBCERA's PE allocation has generated a net 10.78% IRR and 1.62x multiple on $1.7 billion of commitments as of Q3 2023. Performance at the underlying MCA relationships is provided in Table 2.
Table 1: Private Equity Budget and Allocations for 2023-2024
Manager Allocations
2023
2024
Total PE Budget
$525 MM
$575 MM
Base
YTD Add
Adams Street Partners MCA
$75 MM
$75 MM
-
Industry Ventures MCA
$100 MM
$50 MM
-
Irradiant Partners MCA
$50 MM
-
-
Kayne Anderson MCA
$25 MM
-
-
Partners Group MCA
$75 MM
$75 MM
$7.02 MM
Pathway Capital MCA
$85.4 MM
$75 MM
-
Patria SOF V*
-
-
$75 MM*
Allocated PE Budget
$410.4 MM
$275 MM
$357.02 MM
Unallocated PE Budget
$114.6 MM
$300 MM
$217.98 MM
*Subject to due diligence completion. Patria acquired Abrd...
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