Orange County Employees Retirement System (OCERS) has increased its real assets pacing plan for 2023 following a recent allocation increase for the asset class.

According to the pension fund’s meeting document, it now expects to invest an additional $150m (€140m) in real assets this year in addition to the previously disclosed $250m pacing plan set for the period.

The increase to the pacing plan for 2023 is due to last month’s approval to increase real assets allocation from 5% to 6%. The new allocation is 4% for infrastructure and 2% for energy. 

The pension fund’s real assets portfolio includes infrastructure, energy and timber/agriculture investments. 

The commitments planned by the pension fund are expected to be between $50m to $100m each.

OCERS has approved a $50m commitment to EnCap Flatrock Midstream Fund V, an EnCap Investments-managed fund seeking to raise $3bn to invest in oil and gas infrastructure in the US.

The fund target’s gross internal rate of returns of at least 20% with a 2x gross return on invested capital.

EnCap Flatrock Midstream’s predecessor fund which closed in 2018, raised $3.25bn.

To read the latest edition of the latest IPE Real Assets magazine click here.

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