Marin County Employees’ Retirement Association (MCERA) has continued its support of funds of funds managed by Abbott Capital Management and Pathway Capital Management that make primary and secondaries investments.
The pension fund’s investment committee approved $15 million commitments to each of Abbott Capital Private Equity Investors 2017 and Pathway Private Equity Fund Investors 9 (PPEF I-9), according to minutes from its 15 September meeting.
Abbott’s overall approach is to capture a range of different investment strategies over different vintage years, Jonathan Roth, senior partner and president, told MCERA’s investment committee. Roth added that he expects returns will increase as management fees are reduced over time, and that one tactic used to address the long investment time frame has been to introduce secondaries sooner in each vintage year to improve early returns.
Abbott’s 2016 annual programme, in which MCERA had previously committed $50 million, was was 25 percent committed as of August, according to the minutes. The firm’s 2017 programme will follow a similar strategy to its predecessor regarding types of general partners and diversification, and MCERA will pay reduced fees as it is a loyal investor, with further discounts for the size of the commitment and an early close, the minutes note.
The target of Abbott’s 2016 programme was unclear.
Pathway’s previous fund, the $400 million PPEF I-8, is 71 percent committed, according to the minutes. The Irvine-based firm is seeking $300 million for PPEF I-9, according to PEI data.
MCERA had $2.1 billion in assets under management as of 30 June and had an 8 percent target to private equity.