Orange County Employees Retirement System (OCERS) has approved a $250m (€242.8m) real assets pacing plan for 2023, the pension fund’s real assets investment consultant Aksia disclosed in a meeting document.
OCERS is expected to make commitments worth between $50m and $100m each within its real assets portfolio which includes infrastructure, energy and timber/agriculture investments.
As part of commitments for 2022, the pension recently approve a $75m commitment to EnCap Energy Transition Fund II, a fund that invests in the decarbonisation of energy-intensive elements with a focus on low-carbon infrastructure, carbon management and low-carbon fuels.
OCERS disclosed in the meeting document that fund’s manager EnCap is seeking to raise $2bn for the fund. EnCap launched Fund I in 2019 with total commitment of $1.2bn.
Most of the capital for Fund II will be invested in the US and will target a net internal rate of return of 18% to 20%.
Again for this year, OCERS also approved a total of $75m commitment into both the Quantum Energy Partners VIII and Quantum Energy Partners VIII co-investment fund.
The Quantum Energy Partners-managed fund is seeking to raise $3.5bn and a $4.65bn hard cap.
The fund is expected to target energy infrastructure, upstream oil and gas and energy transition/decarbonisation assets mainly in North America.
The fund targets a 20% net internal rate of return.
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