Key Takeaways
- • Kern County Employees' Retirement Association (KCERA), a $7.5 billion pension fund in Bakersfield, California, plans to issue a request for proposal (RFP) for private market consulting services, its first such search since 2019.
- • Staff expect the RFP process, review of responses, and contract decision to take roughly 15 months, with the outcome being either the incumbent or a new provider, according to a memo from CIO Daryn Miller.
- • KCERA's contract with Cambridge Associates expires Jan. 31, 2027; staff recommends extending it to Jan. 31, 2028 to allow time for a thorough evaluation.
- • As of Oct. 23, KCERA's private market allocations stood below target: private real assets at 4.4% (5% target), private equity at 5.8% (6% target), and private credit at 6.5% (8% target).
Summary
Kern County Employees' Retirement Association, a $7.5 billion public pension fund based in Bakersfield, California, plans to issue a request for proposal for private market consulting services. According to a memo from Chief Investment Officer Daryn Miller included in November 4 board meeting materials, the search is expected to take about 15 months, after which staff will review responses and determine next steps for the consulting contract with either the incumbent or a new provider. The search marks the pension fund's first such process since 2019.
A spokesperson for the fund said no timeline has yet been set for the RFP. Once issued, the document will be publicly available online.
The fund's contract with current private markets consultant Cambridge Associates expires January 31, 2027. Staff recommends extending that agreement to January 31, 2028, which the memo says would give the pension fund "enough time to execute a thorough and robust evaluation process."
The review comes as the fund's private market portfolio sits below its policy targets. As of October 23, the fund held 4.4% in private real assets against a 5% target, 5.8% in private equity against a 6% target, and 6.5% in private credit against an 8% target.
A spokesperson for the fund said no timeline has yet been set for the RFP. Once issued, the document will be publicly available online.
The fund's contract with current private markets consultant Cambridge Associates expires January 31, 2027. Staff recommends extending that agreement to January 31, 2028, which the memo says would give the pension fund "enough time to execute a thorough and robust evaluation process."
The review comes as the fund's private market portfolio sits below its policy targets. As of October 23, the fund held 4.4% in private real assets against a 5% target, 5.8% in private equity against a 6% target, and 6.5% in private credit against an 8% target.
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