Board approves one-year extension for HarborVest wind-down, ISERS exposure $755,000

The Imperial County Board of Retirement voted to approve a one-year extension of the HarborVest fund term to Sept. 30, 2027, to allow the fund's managers additional time to complete exits during an ongoing wind-down. Danny Sullivan of Sarity Partners presented the recommendation and said the extension requires written consent of limited partners and that no new capital will be called.

Sullivan told the board that HarborVest's initial term ended in 2022 and the manager is seeking what would be the fourth one-year extension. "Harbor Vest is asking limited partners to approve, 1 year extension of the funds term through 09/30/2027," Sullivan said. He reported that 40 of the original 82 investments remain active, representing about 215 underlying portfolio companies, and that remaining value in the vehicle was about 335 million euros as of March 31, 2026; the fund's net internal rate of return stood at 13.2% and distributions relative to paid-in capital were 1.87.

Board members asked about ISERS' specific exposure and liquidity risks. Chair warned against a "fire sale" approach and noted that the extension carries no management fee for the additional year, which board members described as aligning manager incentives with plan participants. ISERS staff reported the plan's current balance in the HarborVest partnership at $755,000. Suzanne moved to accept the recommendation; the motion was seconded and approved by voice vote.