Sacramento County Employees evaluates real assets and real estate markets

The Sacramento County (Calif.) Employees’ Retirement System (SCERS) has released its 2023 Investment Year In Review and 2024 Annual Investment Plan, wherein it reviews its real estate and real assets allocations and strategies during 2023 and articulates its targets for those asset classes for 2024.

To date in 2023, SCERS has committed $0 to real estate funds, “given the rising interest rate impact on property valuations and transaction activity,” SCERS noted in its report.

However, the retirement system has committed $165 million to real assets funds during this year, including $25 million to NGP Royalty Partners II, $40 million to Ara Partners Fund III, a $50 million follow-on to Meridiam Infrastructure North America IV and a $50 million commitment to KKR Asia Pacific Infrastructure Fund II.

SCERS has set a target to make $180 million of infrastructure commitments in 2024, with an aim for one energy-related fund commitment; two infrastructure fund commit