Key Takeaways
- • Mendocino County Employees' Retirement Association, a California pension with a portfolio just under $1 billion, is weighing a private equity allocation after previously declining one over high fees and unimpressive risk-adjusted returns.
- • Consultant Callan presented the rationale for revisiting the decision, according to PEI Private Equity.
- • Liquidity risk is the main concern county officials raised as they consider the allocation.
Summary
Mendocino County, California, is reconsidering a private equity allocation for its public pension, which manages a portfolio just shy of $1 billion, according to PEI Private Equity. The pension had previously passed on the asset class, citing high fees and unimpressive risk-adjusted returns.
The county's reconsideration comes after investment consultant Callan outlined the case for revisiting that decision. Officials have expressed concern about liquidity risk, a central consideration for a mid-sized public plan evaluating an illiquid asset class with long capital lock-up periods.
The article is based on the PEI report published 21 July 2026 and does not provide details on a proposed target allocation size, specific managers or commitment amounts.
The county's reconsideration comes after investment consultant Callan outlined the case for revisiting that decision. Officials have expressed concern about liquidity risk, a central consideration for a mid-sized public plan evaluating an illiquid asset class with long capital lock-up periods.
The article is based on the PEI report published 21 July 2026 and does not provide details on a proposed target allocation size, specific managers or commitment amounts.
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