March 27 (Bloomberg) — Orange County, California's $11.5 billion pension is putting together a fund open to smaller retirement plans to give them access to private-equity investments at a lower cost.

The county selected London-based Pantheon Ventures LLP yesterday to manage the pool. For the past 10 months, Orange County's Employees Retirement System has been collaborating with other California pensions to develop the fund, which would give them leverage when negotiating fees with private-equity firms.

Orange County, south of Los Angeles, plans to invest $50 million to $100 million annually over three years. It may save as much as $5 million a year in fees, more than the system pays investment staff, according to a memo. Pensions from California's San Bernardino County to the state of Wyoming are considering joining the fund, according to officials at both plans.

Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.

  • Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.