KCERA Adds $70M to Private Markets Portfolio

The Kern County Employees’ Retirement Association (KCERA) in Bakersfield, CA, added two new strategies totaling $70 million to its growing private markets portfolio last month, according to board meeting records.

The $6 billion system has earmarked $45 million to Houston-based Quantum Energy Partners’ latest buyout fund, Quantum Capital Solutions II. The fund intends to participate in asset-level joint ventures and hybrid credit investments in the U.S. energy sector. CPP Investments is among the fund’s other investors.

Castlelake received $25 million for its distressed debt fund, Castlelake Aviation V Stable Yield. Other investors include the Teachers’ Retirement System of Louisiana, which contributed $50 million to the fund last July. Castlelake Aviation, based in Minneapolis, plans to invest in, finance, and manage aviation assets.

For the fiscal year ended March 31, the pension fund returned 10.3%. The private equity portfolio increased by 12.2%, while private credit returned 11.7% throughout the same period.

The new commitments come as its private credit program is just below its top range of 8%, having stood at 5.5% as of the end of March. According to Verus’ investment performance reports, private equity is getting closer to its 5% maximum target range, at around $244 million.