The Oklahoma City Employee Retirement System board on Nov. 13 approved new private-market allocations and authorized an actuarial experience study as part of its regular agenda on investment pacing and portfolio construction.

Jason of ACG introduced Joe Nugent, ACG's director of private markets, who reviewed the private equity program and recommended a $15,000,000 commitment to Warburg Pincus Global Growth Fund 15 to progress toward the board's 15% private-equity target (current exposure is just under 10%). Joe said the program's long-term objective is "to outperform public equity markets over the long term." He described return comparisons and pacing work that produced a suggested $35,000,000 annual pacing guideline for new private-equity commitments under current assumptions.

Trustee questions focused on terminology and mechanics. One trustee asked why the "drawn to date" line exceeded the committed amount on a particular fund. Joe explained that management fees are often outside the committed dollars and that distribution recycling during the investment period can result in deployed (drawn) dollars that exceed the nominal commitment over time.

The board then approved a $15 million commitment to Warburg Pincus Global Growth Fund 15.

On the opportunistic real estate side, ACG presented the case for increasing exposure to opportunistic strategies that can add diversification and inflation protection; Nugent recommended a $10,000,000 commitment to Starwood Distressed Opportunity Fund 13. He noted Starwood Opportunity Fund 12 (the system's prior exposure) is performing at about a 10% net IRR with a 1.2x multiple so far. The board approved the $10 million commitment.

Separately, the board approved engaging Gabriel, Roeder, Smith & Company to conduct an experience study analyzing actuarial assumptions — a study the board typically carries out every five years to inform pension assumptions and valuation work.

All three items (actuarial engagement, Warburg commitment, Starwood commitment) were moved, seconded and approved during the meeting.