DPFP currently has no secondaries exposure in its private equity portfolio. The bulk of its portfolio, or 27 percent, is centered around growth equity funds. Energy funds make up 22 percent of the portfolio and buyout funds account for 18 percent.
NEPC also recommends DPFP maintains an active private equity commitment plan going forward, “being mindful of the plan’s liquidity needs”. The consultant indicated investment strategies that provide capital appreciation and near-term income distribution lead to a balanced portfolio and can offer some liquidity.
DPFP should also consider committing $25 million to a growth equity or buyout-focused 2015-vintage fund, the documents disclosed.
DPFP has $3.33 billion of assets under management and a 10 percent target allocation to private equity as of 30 September 2014.
A spokesperson from the pension did not return a request for comment by press time.