Fresno (Calif.) City Retirement Systems is launching an invitation-only search for private equity managers, said Robert Theller, retirement administrator, in an email.
The joint board of the Employee Retirement System, and Fire and Police Retirement System approved the search at its meeting Wednesday, Mr. Theller said.
The search is the result of the joint boards raising the target to private equity to 8% in April 2021 from its initial target of 5% it had first established in 2018.
The pension fund had originally hired Pantheon as a discretionary private equity manager to oversee the original allocation, and Mr. Theller said the board plans to seek "one private equity manager to provide core exposure and potentially one or more managers to provide differentiated exposure."
Whether the new managers would have discretionary authority to make private equity commitments is dependent on the responses to the search.
Mr. Theller said the current actual allocation to private equity is about 3.5%.
Investment consultant NEPC is assisting with the search. Selections are expected in the third quarter.
The retirement systems have a combined $3.9 billion in assets.
