San Diego Pension Approves $105M in Private Market Commitments
The San Diego City Employees’ Retirement System (SDCERS) approved $105 million in new commitments across private debt, infrastructure and real estate strategies, further expanding the $13 billion pension fund’s exposure to private markets while reaffirming its long-term asset allocation targets.
Acting on recommendations from investment consultants Callan and Meketa, trustees approved a $50 million commitment to Pemberton Mid-Market Debt Fund V, which invests in senior secured first-lien loans to core middle-market companies across Europe. Managed by Pemberton Asset Management, the fund is targeting €5 billion in commitments.
The board also approved a $15 million investment in the StepStone Infrastructure Fund through the pension system’s StepStone Infrastructure Separately Managed Account. The closed-end fund focuses on secondary infrastructure investments globally, with a primary emphasis on North America and Western Europe, and is seeking approximately $750 million in capital.
In real estate, trustees authorized a $40 million commitment to Artemis Real Estate Partners Healthcare Fund III, a non-core strategy investing in U.S. healthcare and senior housing properties. Artemis expects the portfolio to be evenly split between senior housing and medical outpatient buildings, with investments spanning independent living, assisted living and memory care facilities.
At its July meeting, the board also announced that SDCERS Chief Executive Officer Gregg Rademacher plans to retire in May 2028.
Trustees completed the pension system’s annual asset allocation review with consultant Aon, adopting a recommendation to leave the portfolio unchanged. SDCERS continues to target 5% allocations to both private debt and infrastructure, alongside a 10% allocation to real estate, reflecting the pension fund’s continued commitment to private market investments.
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