KCERA Adds $95M to Private Markets Portfolio
The Kern County Employees’ Retirement Association (KCERA), which oversees $6 billion in assets, bolstered its private markets program with three new fund commitments, as detailed in its April board meeting materials.
Post Oak Energy Capital
KCERA allocated $45 million to Post Oak Energy Capital, comprising $40 million to Post Oak Energy Partners V and $5 million reserved for potential co-investments. The private real assets fund, which secured commitments from the Florida State Board of Administration in 2024, focuses on energy ventures. Notable investments include Quantent Energy Partners in the Haynesville Shale and Midway Energy Partners in the Permian Basin.
Atlas Capital Resources Fund V
A $25 million commitment was made to Atlas Capital Resources Fund V, managed by Atlas Holdings. The fund targets control investments in operationally complex, underperforming, or distressed middle-market businesses, aiming to build a portfolio of 10 companies in asset-intensive sectors like building and construction, energy, metal fabrication, and pulp and paper.
Blue Torch Credit Opportunities IV
KCERA committed $25 million to Blue Torch Capital’s latest fund, Blue Torch Credit Opportunities IV. The fund provides senior secured, first-lien loans to transitioning middle-market companies in North America.
Portfolio Growth and Capital Activity
KCERA’s private markets exposure has risen to $975 million, representing 15.5% of plan assets, up from 13% two years ago, according to CIO Daryn Miller’s recent update to trustees. Capital call activity has intensified over the past two quarters, with recent commitments triggering significant initial calls, aligning with the investment team’s expectations.
