The California pension will take a ‘baby steps approach,’ putting as much as $55m into co-investments this year.

Co-investments continue to be a preferred strategy for institutional investors looking to reduce the costs of their private-equity portfolios.

On Wednesday, the Orange County Employees Retirement System’s board of trustees in California approved a proposal to add co-investment commitments to its $2.1bn private-equity holdings. The California county’s pension plan has a total portfolio of $19.28bn.

OCERS is among the nation’s 100 largest public pension funds, with the Investment Committee overseeing the system’s diverse portfolio. The combination of employee and employer contributions and the earnings from OCERS’ investments give the retirement system the ability to pay our members the retirement benefits that they’ve earned.

Source: Wall Street Journal

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