KCERA Commits $95M, Hightower Names New CEO, and TPG Bullish on 2025 Fundraising (indiv. articles drop-down)

The Kern County Employees’ Retirement Association (KCERA) allocated $95M to four funds in private equity, private credit, and real estate, and revealed its 2025 private markets benchmarks totalling $345M across the three asset classes. 

According to February 12 board meeting materials, the California-based pension committed $30M each to core real estate funds Hudson Bay Real Estate Opportunities and SRE Opportunity Fund V, as well as private credit fund OrbiMed Royalty & Credit Opportunities V, all representing re-up commitments. Additionally, Kern County allocated $5M in co-investment to Project TreeCo – Warren Equity Partners. The deals were closed in December and January. 

KCERA also disclosed that it is targeting $345M in commitments to private markets for this year, comprising $85M to private equity, focusing on buyout and secondaries re-ups, or early-stage/sector focused venture capital; $175M to private credit, focusing on opportunistic credit strategies and complementary non-corporate exposures; and $85M to real assets, focusing on real estate re-ups, and energy and infrastructure. 

The 2025 benchmarks, proposed by private equity consultant Cambridge, are projected to achieve the pension’s 18% portfolio target by 2026. KCERA said it made $398M in total private market investments in 2024, made up of 13 individual funds and two co-investments.

The University of Alabama System Endowment made a total of $80M in real estate allocations while terminating a manager within its international equity portfolio. 

Per media materials related to its February 6 board meeting, the university approved committing up to $20M in follow-on to SRE Opportunity Fund V, and $60M to Socorro Dynamic Opportunity Fund, both within its real estate portfolio. The pension said it has made previous commitments to three of the SRE fund’s past iterations: $275M to Fund II in 2015, $500M to Fund III in 2017, and $823M to Fund IV in 2021. 

Both recent commitments will fall under the UA System’s real estate allocation, which constitutes 29% of the private real assets umbrella. General consultant Fund Evaluation Group, which recommended the allocations, said commitments in real assets are likely to increase “as more GPs return to the market.” 

Meanwhile, the UA System Endowment also redeemed its investment with Southeastern Global Equity and reallocated the proceeds to existing manager Northern Trust MSCI ACWI IMI Fund. The move follows a recommendation by the pension’s fund evaluation group to increase allocations in passive and enhanced index funds, which constitute 26% and 12% in respective weights within the endowment’s public equity mix.

The UA System allocates 34% to public equity and 10% to private real assets out of a total portfolio of approximately $6.7B, as of the latest Dakota data. 

The Memphis Light, Gas & Water Corporation (MLGW) is reviewing three candidates in its international equity manager search as it looks to replace existing manager JO Hambro for a $46M mandate.

According to its recently published January 22 board meeting minutes, the utility pension is considering GQG Partners, MFS Investment Management, and Northern Trust for the mandate, and is set to hear presentations from GQG and MFS in its February session. MLGW conducted the manager search to replace JO Hambro due to the fund’s underperformance since 2022.

General consultant CBIZ is assisting in the manager search and selection for MLGW, which administers a total portfolio of approximately $1.6B as of yearend 2024.

Oklahoma Firefighters Allocates $20M to Adams Street Co-Invest VI

The Oklahoma Firefighters Pension & Retirement System made a $20M commitment to Adams Street Co-Investment Fund VI, per recently released minutes from its December 20, 2024, board meeting.

The pension said it approved the allocation in a unanimous vote following a review of the private equity co-investment. The amount represents a follow-on to its $50M commitment to predecessor Co-Investment Fund V in 2021.

As of the latest Dakota data, Oklahoma Firefighters manages approximately $3B in total plan assets.

Hightower Advisors announced that it has recruited Larry Restieri as the firm’s next CEO and a member of its board, effective March 2025, succeeding Bob Oros who has been the firm’s CEO since 2019.

Oros will remain as a board member to support strategic continuity and a smooth transition for the firm’s clients. Restieri has 24 years of industry experience, according to his BrokerCheck profile. He most recently served as the CEO of Goldman Sachs Ayco, Goldman’s fee-based advisory unit providing financial planning, investment management, and other services primarily to company-sponsored plans. He had been with Goldman since 2000 and led the Ayco business since 2018. He began his career in 1996 at Simpson Thacher & Bartlett LLP.

Hightower said the planned succession marks its transition to a new phase of growth, focusing on expansion and transformation efforts that were started under Oros and included the acquisition of consultant and OCIO firm NEPC in October 2024. 

Tulsa, OK-based advisors Stolper Asset Management and DCH Financial Services have merged to form Wealth Oklahoma, catering largely to clients in the city.

Both firms were affiliated with Raymond James and will remain so following the merger. Stolper Asset Management founder Jon Stolper will serve as a wealth manager and CIO, and joining him from the Stolper side are Susan McDonald, who will serve as research director and portfolio manager of the new firm, and branch operations manager and client service associate Janet Miller. From DCH, co-owners Saleth Fuller and Karen Burns join the firm, with Fuller serving as a wealth manager and Burns as an investment executive and chief compliance officer. 

In a January 3 Form ADV filing, Stolper disclosed over $307M in regulatory assets under management, of which $148M were from high-net-worth individuals. No similar disclosure was available to determine the assets managed by DCH.

LPL Financial announced that Yuma, AZ-based financial advisors Steve Schulte and Melissa Toler Short have joined Linsco, the firm’s employee advisor channel, from Ameriprise where they reportedly managed a combined $300M in advisory, brokerage, and retirement plan assets.

Schulte and Toler Short join Linsco as Southwest Wealth Advisory Group. Prior to joining Ameriprise, Schulte was affiliated with LPL, Wells Fargo, and Merrill Lynch, while Toler Short was affiliated with Edward Jones and UBS. The two advisors reportedly met at their local Rotary Club where they first established their partnership, working closely with CPA firms. Joining them at Southwest Wealth are client service associates Rhonda Kirk and Maren Green.

Southwest Wealth Advisory Group is the second Arizona-based team from Ameriprise to make the jump to LPL this month, following Scottsdale’s $345M Jackson/Roskelley Wealth Advisors.

Cetera Financial Group announced that Lenexa, KS-based Mainstreet Credit Union and its Cetera Financial Institutions division have entered into a networking agreement involving Mainstreet Retirement and Investment Center, the credit union’s member-focused investment program.

Founded in 1953 by a group of educators, Mainstreet Credit Union, formerly known as Northeast Johnson County Teachers’ Union, is a nonprofit institution wholly owned and operated by its members. The credit union currently serves 56,000 members, operating from 11 branches across Kansas City and managing $691M in assets.

Mainstreet Retirement and Investment Center will be led by veteran advisors Dave Loftus, Sara DuBois, and Mike Thornhill, with a combined 67 years of wealth management experience. Loftus, DuBois, and Thornhill will be joining Cetera as employees as a part of the agreement.

The agreement is Cetera’s first in the credit union space since it entered into a networking deal with Philadelphia-area credit union Citadel in December.

With its plans for new funds and investment strategies in 2025, including the launch of its second GP-led secondaries fund, TPG is bullish on fundraising this year, aiming to surpass the $30B in fresh capital it raised in 2024.

During an earnings call for its 2024 annual results, the San Francisco-based alternative asset management firm disclosed that it surpassed its fundraising targets for the year. It wrapped up 2024 with $246B in total AUM, marking an 11% increase from the prior-year period and raising $12B across its credit strategies and $14B under its private equity and infrastructure strategies.

Looking ahead to 2025, the listed asset manager is bullish on its fundraising prospects. "We are entering 2025 with significant momentum, and we have multiple levers to generate accelerated growth during the year," CFO Jack Weingart said on the call.

The firm attributed its optimism on capital raising to expectations that some of its newer strategies will make meaningful contributions during the year. TPG's fundraising plan for the year includes the launch of a new evergreen private equity vehicle, which will be opened to retail investors. The go-live for its new private equity vehicle TPOP is expected in the second quarter, while later in 2025, the firm also plans to launch its second GP-led secondaries fund. 

Within the year, it also intends to hold initial closes for its flagship buyout funds TPG Capital and Healthcare Partners, next-generation funds under its GP Solutions and Tech Adjacencies strategies, and its broad-based impact private equity fund Rise Climate Transition Infrastructure.

For the latest generations of its flagship funds, TPG has so far secured commitments from investors including the Los Angeles Water & Power Employees' Retirement Plan, Orange County Employees Retirement System, Contra Costa County Employees Retirement Association, New Mexico State Investment Council, State of Michigan Investment Board and Teacher Retirement System of Texas, according to Dakota data.

Regarding the deployment of its funds, the firm expects investments to accelerate later in the year. "We've been working hard throughout '24 to put the building blocks in place for that. If you think about the trajectory of that growth during the year this year, it should accelerate towards the back half of the year as we add more funds to the fundraising pipeline," CEO Jon Winkelried said.

KKR has secured $14B in capital commitments so far for its latest North America buyout fund ahead of a possible initial close later this month, Bloomberg reported February 11, citing people with knowledge of the matter.

The investment firm reportedly opened KKR North America Fund XIV for subscription in June 2024 with a target of $20B. The fund's predecessor, KKR North America Fund XIII, raised $19B when it closed in April 2022.

According to Dakota data, the latest fund has so far received investment commitments from the Minnesota State Board of Investments, Louisiana State Employees Retirement System, Washington State Investment Board, and the Public Employee Retirement System of Idaho.

KKR filed for the latest iteration of its North America-focused private equity strategy in December 2024, noting that it expected fundraising to last more than a year. To help market Fund XIV across the US, the firm tapped Merrill Lynch, CAIS Capital, and J.P. Morgan Securities. Outside the country, Moonfare, Hesed Investment Consulting, Korea Asset Investment Securities, CrownRock Partners, Picton, Arngrimsson Advisors, Oddo BHF, and SMBC Nikko Securities are marketing the fund. 

Throughout its roughly 50 years of private equity investing, KKR has deployed $154B in capital and built a portfolio of over 200 companies. As of the end of the third quarter of 2024, the firm's available capital for additional investments amounted to $52B. Through the North America-focused area of its private equity strategy, KKR targets opportunities in traditional, core, middle market, impact, technology and healthcare markets. In its investments, it uses an employee ownership-centric strategy with the objective of delivering breakthrough results in businesses.

PSG announced on February 12 that it closed two of its investment vehicles with capital commitments totaling $8B.

PSG VI, the growth equity firm's sixth flagship North American fund, secured $6B from new and existing investors, including state and corporate pensions, sovereign wealth funds and family offices. The fund surpassed its predecessor, which closed at $4.7B.

PSG opened for sale in August 2023. As of July 2024, the fund had raised $5.01B from 188 investors. According to a filing with the SEC, J.P. Morgan Securities, Hollister Associates, and iCapital Markets helped market the fund across the US, while Evercore Group promoted the fund in 36 states and Washington, DC. Z Square Partners Consulting, Kyobo Securities, PineGrove Capital and Alpine Capital Advisors promoted the fund outside the US.

The Boston-based firm earmarked PSG VI for next-generation software companies, particularly those with the potential to transform markets and create new ones. PSG co-founder and CEO Mark Hastings said the firm is particularly excited about developments in artificial intelligence.

Meanwhile, PSG also closed PSG Sequel, raising $2B for the continuation of investments in Arcoro, LivTech, Nextlane, Semarchy, Singlewire Software and Transit Technologies. The continuation fund secured support from Canada Pension Plan Investment Board, GIC, StepStone, and Hamilton Lane-managed funds. According to a separate SEC filing, the firm sought the assistance of Evercore Group in marketing the continuation fund across 36 states and Washington, DC.

Since its establishment in 2014, PSG has completed 75 transactions, either as a minority or a majority investor. It has backed 19 companies with AI-based business models and built a portfolio that includes 2ndWave Software, Addigy, Adeptia, Billwerk+, Bilton, Chatmeter, DivvyCloud, Inktavo, MentorcliQ, PatientNow and Quilt.

Invesco's $48B private credit platform secured $1.4B in capital commitments at the February 11 close of its sophomore direct lending fund, inclusive of companion vehicles.

Invesco Private Credit intends to utilize Invesco Direct Lending Fund II to capitalize on the expected revitalization of the mergers and acquisitions market and related opportunity to invest in high-quality companies. In line with the platform's strategy, the fund will originate senior secured loans for sponsored middle-market companies, primarily based in North America. The investment management firm filed for Fund II with the SEC in October 2024, tapping Invesco Distributors to market the fund in the US.

In addition to direct lending and broadly syndicated loans, Invesco's private credit platform also invests in distressed credit or special situations opportunities. It targets companies with EBITDA in the $20M to $75M range with well-established business models, stable cash generation, and exposure to industries with favorable long-term trends.

In parallel to announcing the close of Fund II, Invesco reported that its total AUM as of January 31 increased 3.1% to $1.90T, compared with the previous month, with private markets assets accounting for $131.1B of the total.

EQT Group announced the launch of a new infrastructure strategy, EQT Nexus Infrastructure, in a bid to broaden its catalog of evergreen offerings available to both institutional and individual investors. 

The strategy will offer investors exposure to the firm’s global portfolio of infrastructure strategies representing €75B (~$77.7B) in value-add, active core, and transition infrastructure investments, as well as direct investments in infrastructure companies in EQT’s portfolio. EQT Nexus Infrastructure will be its second evergreen strategy since launching EQT Nexus, which focuses on the firm’s flagship funds, in 2023. 

EQT said it has seen “elevated demand for evergreen infrastructure strategies” as investors seek “flexibility to customize their portfolios.” The team managing the new strategy will be led by William Vettorato, advisory head of fund strategy for the firm.

To date, the Stockholm-based global investor oversees €269B (~$278.5B) in total AUM across its private capital and real assets businesses. While recently reporting 2024 earnings, the company said it expects to close its sixth flagship fund, which is targeting €20B, sometime in the first quarter of the year.

Northrim Horizon announced on February 11 that it closed Northrim Horizon Fund III at its hard cap of $235M, reflecting strong investor demand.

The permanent capital investment firm's third flagship fund received capital commitments from a geographically diverse set of investors, including insurance companies, endowments, fund-of-funds and family offices.

Northrim Horizon acquires and operates well-run, profitable service and software businesses. In line with its strategy, Fund III will target well-managed lower middle market companies with established platforms in the areas of business and consumer services, healthcare services, and software and tech-enabled services. It focuses on companies with EBITDA in the $1M to $5M range.

The firm notified the SEC regarding its third fund in October 2024, indicating that it expected the investment vehicle to be open for subscription for less than a year. Since its establishment, Northrim Horizon has completed 47 acquisitions, building a portfolio that includes Genesis Landscape Solutions, Horizon Commercial Pools, Noble Hospice, NorthStar Preschools, Total Apartment Solutions, and VLogic.

IMB Partners closed its inaugural institutional fund with $125.5M in capital commitments, marking an oversubscription against the $100M target for the investment vehicle.

The Bethesda, MD-based private investment firm said it formally closed IMB Partners SBIC I on the final day of 2024. The fund received commitments from 100 investors, including banks, pension funds, insurance companies, foundations, endowments, and high net worth individuals.

In line with its manager's strategy, the fund will target lower middle market companies involved in the electric and gas utilities sector and niche government contracting. It will focus on businesses with EBITDA in the $5M to $25M range.

IMB Partners carries a license to operate the fund as a small business investment company. For the fundraising, it tapped Thomas Capital Group and Commerce Street Capital as placement agents and Winston & Strawn as legal counsel. 

Since its establishment in 2010, IMB Partners has invested more than $1B in over 30 platforms, focusing on long-term prospects for its investors. Its portfolio includes electrical contracting firm Carr & Duff and corrosion protection company Farwest Corrosion Control, as well as Pro Food Solutions, which comprises Richmond Wholesale, Alder Foods, and Elite Brands.

Adams Street announced that it has opened its first Canada office in Toronto, the firm’s sixth in North America and 13th global office, and appointed investor relations principal Colin Miller to lead the new office.

The firm has maintained a Canadian presence for 20 years, attracting investments from a diverse range of institutional investors, including public and corporate pensions, endowments, foundations, family offices, and wealth platforms. Adams Street global head of investor relations Kevin O’Donnell said in a statement that the firm is eager to expand its platform by facilitating access to investments that capitalize on change, dislocation, and growth.

Miller joined Adams Street in 2024 as a principal in investor relations. As the manager for the Toronto office, he will be responsible for deepening the firm’s relationships with institutional and intermediary investors, expanding the investor base, and providing client services to new investors. He was previously the head of Canadian institutional business development at Fiera Capital and had managerial roles in firms such as SLC Management, Canoe Financial, Sun Life, and AON Hewitt, according to his LinkedIn profile.

In October 2024, Dakota reported that Adams Street had raised $1.1B for its 2024 Global Fund Program, the latest installment in its 30-year fund of funds series that deploys capital across multiple investment strategies, including secondaries and co-investments, to build a “targeted global portfolio” of private small and medium enterprises.

Impact investor Closed Loop Partners announced that Capricorn Investment Group made a growth investment in its asset management arm, Closed Loop Capital Management.

The deal was undertaken with Capricorn’s private equity partnership Sustainable Investors Fund, which provides support to emerging managers, particularly impact investors, through growth-oriented GP stakes investments. Closed Loop said it has made 85 circular-economy investments over the last 10 years.

Following the deal, Capricorn joins JS Capital, Schusterman Family Investments, and Closed Loop founder and CEO Ron Gonen as a shareholder in the New York-based firm. Sidley served as legal advisor for Capricorn, while Denton provided legal counsel to Closed Loop.