Orange County Employees targets up to $150m of noncore real estate commitments in 2023

The $20 billion Orange County (Calif.) Employees Retirement System (OCERS) is planning to make between $75 million and $150 million commitments to the noncore real estate portfolio in 2023, according to the pension fund’s real estate pacing plan for the year.

OCERS plans to make one to two new investments at $75 million per fund, according to a Feb. 22 meeting document. The pension fund does not plan to make any commitments on behalf of its core portfolio. It was unclear whether any specific commitments were in the pipeline at the time of publication, and OCERS did not respond to a request for comment.

As of Sept. 30, 2022, OCERS had a 14.3 percent allocation to real assets — of which 58 percent of the portfolio is targeted to real estate — against a 12 percent target. The real assets portfolio had a market value of more than $2.8 billion.