SDCERA Weighs Equity Cuts Ahead of FY2027

San Diego County Employees Retirement Association is weighing a shift in its fiscal year 2027 asset allocation policy that would reduce total liquid equity exposure from 48% to 45% and trim the global equity sub-target from 5% to 2%, with the freed-up weight moving to fixed income. The changes, developed with consultant Aon, would take effect July 1 if approved — a forward-looking policy signal for managers in equity and fixed income alike.

Among other allocators, San Joaquin County Employees' Retirement Association approved $175M across two commitments – $100M to ISQ Global Infrastructure Fund IV and $75M to Abacus Multi-Family Partners VII – consistent with the asset allocation it adopted last December. Seattle City Employees' Retirement System approved $60M in private credit commitments, split equally between Monarch Capital Partners VII and Ares Pathfinder Fund III, deepening existing relationships with both managers and advancing its goal of increasing private credit's share of its credit fixed income sleeve.

In GP fundraising updates, Ares Management held the first and final close of Ares Pathfinder Fund III at $8.5B, oversubscribed at its increased hard cap and exceeding the $6.6B raised by the 2023-vintage predecessor. In direct lending, London-based Arcmont Asset Management is reportedly nearing the final close of its fifth direct lending fund at approximately €15B–€17B, with about €11B raised to date; according to Dakota data, Teachers Retirement System of Louisiana committed $100M to the vehicle in 2025.

And in people news, CalSTRS promoted Josh Diedesch to director of its total fund management division, where he will oversee asset allocation, risk, and balance sheet management and lead the fund's 2027 asset liability management study. Separately, Market Street Trust Co. appointed Joe Aguilar as CIO; Aguilar departs the Office of the Illinois State Treasurer, where he served as CIO since 2021 overseeing $65B across multiple funds.

Read on for all the day’s fundraising news headlines.

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Bain Capital closed at $10.5B against a $7B target. Kayne Anderson had to raise its hard cap. THL, Apollo, and Water Street all closed oversubscribed.

For managers with established track records, May wasn't difficult. It was constructive — almost unusually so.

Meanwhile, pension capital committed hit $25.1B, nearly 56% above April's $16.1B.

The capital is moving. The question is whether you're seeing it in time.

Dakota's May Fund Launches & Closes tracks where it went — and what's still in market.

Download the report →

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