The Sacramento County Employees’ Retirement System (SCERS) has approved $160 million in new private market commitments, furthering its push into infrastructure, private equity, and private credit. The $14.5 billion pension system reported that its $2 billion real assets program continued to post steady gains, returning 2.7% in the first quarter, outpacing its 2.0% benchmark. Infrastructure remained the strongest performer, while energy strategies contributed modest positive results. 

A highlight of the recent activity was SCERS’ $50 million commitment to Manulife Infrastructure Fund III, a $4.5 billion target vehicle, marking the start of a new partnership. Infrastructure has been a consistent driver of performance for SCERS, with Meridiam Sustainable Infrastructure Europe IV (+9.5%), Meridiam Infrastructure North America Fund III (+8.8%), and Tailwater Energy Fund IV (+6.3%) leading recent returns. Since inception, the real assets allocation has generated a net IRR above 10%, supported by exposure to infrastructure, energy, agriculture, and timberland. 

On the private equity side, SCERS committed $25 million to Threshold Ventures V, an early-stage venture capital fund focused on healthcare and software, and $35 million to Riverside Value Fund II, a $750 million lower middle market buyout vehicle. 

The pension system also expanded its private credit allocation with a $50 million investment in Comvest Credit Partners VII, which targets senior secured, unitranche, and second-lien financings for middle-market companies.