Santa Barbara Invests $40M in PE, RE, Real Return

The $4.4 billion Santa Barbara County Employees’ Retirement System has invested an additional $20 million in private equity and another $20 million in real estate and real return strategies, according to meeting materials.

At the end of the first quarter, the pension fund had $577 million allocated to private equity, more than the system’s $451 million allocation to real estate.

In March, the private equity program made two commitments. Sterling Group Partners VI, a middle-market buyout fund focused on North America, received a $10 million allocation. The Sterling Group-managed fund just hit its hard cap of $3.5 billion.

The second $10 million commitment was made to Bridgepoint Development Capital V, a middle market buyout fund focused on opportunities in Western Europe. Bridgepoint Group manages the fund, which aims to raise more than $2 billion. The fund will make control and non-control equity investments in technology, services, and healthcare.

Officials also granted $10 million to Tiverton Ag Legacy Holdings II from the real return portfolio. Tiverton Ag manages the natural resources strategy, which is focused on North America.

In real estate, the Lubert-Adler Workforce Housing Fund II, which Lubert-Adler manages, has received a $10 million pledge. The fund’s emphasis is on value-added property holdings in North America.

Hamilton Lane, which consults on the pension funds’ private equity, real return and real estate assets, assisted with the selection of the managers.