Sacramento Retirement System Adds to Credit, Infrastructure

The Sacramento County Employees’ Retirement System continues to add managers to its alternative asset portfolios, with the latest credit and infrastructure commitments, according to November meeting documents.

Within its credit portfolio, the $12 billion pension system committed $50 million to Ares Senior Direct Lending Fund III, a U.S.-focused strategy, and $35 million to IFM U.S. Infrastructure Debt Fund, an open-ended commingled fund focused on U.S. direct lending.

Officials expect private credit to meet its 5% target by 2026. In 2024, a maximum of $200 million is estimated to be poured into the asset class, with a concentration on managers with experience navigating default cycles and loan work out capabilities.

Within the system’s real assets program, a $50 million commitment was completed to KKR Asia Pacific Infrastructure Fund II. Officials said they were targeting another $160 million in real assets in 2024.

Officials also revealed that a $40 million contribution to an existing buyout partnership inside the private equity program is being considered.