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ERS board commits $15 million to Warburg Pincus fund amid private-markets pacing plan
Summary
The Oklahoma City ERS approved a $15 million commitment to Warburg Pincus Global Growth Fund 15 as part of a multi-year plan to increase private equity allocation toward a 15% target; staff outlined pacing guidance and manager selection priorities.
Trustees approved a $15,000,000 commitment to Warburg Pincus Global Growth Fund 15 as part of the system's multi-year private markets plan.
Jason and Joe Nugent (director of private markets at ACG, named in the packet) presented an overview of the private equity program and the rationale for the commitment. Presenters said the system's private equity target has grown over time (from a 5% target in 2009 to a 15% target in 2023) and that current exposure is just under 10%.
A presenter summarized long-term performance comparisons: "over the long term, both the 15 year and the since inception numbers 13.6 in this particular case...the public equity markets over that same time frame ... were 10.8 or 11.3," and said private allocations have historically outperformed global public equities by roughly 2 percentage points annualized. The presenters explained commitment and draw mechanics, including that "management fee is outside of the committed dollars" and that funds may recycle distributions such that 'drawn to date' can exceed the committed amount.
Staff presented a pacing model that produced a notional target of $35,000,000 in new commitments per year to move the private equity allocation toward 15% over a 4–5 year horizon and said the recommended $15 million Warburg commitment aligns with that plan.
Trustees asked clarifying questions about the table showing 'committed' versus 'drawn to date' amounts and about fee treatment; staff explained the mechanics and confirmed returns are reported net of fees. After discussion, the chair called for a motion; the board moved, seconded and approved the $15 million Warburg commitment.
