Merced County Employees’ Retirement Association (MCERA), a California retirement system that oversees $651 million in assets under management, has approved a $7.5 million agriculture allocation to private equity firm Blue Road Capital, according to public documents. Steven Bland, the pension’s retirement administrator, confirmed the development to Pensions & Investments.

 

According to public documents dated July 23, the allocation is being directed toward an “agriculture partnership.” MCERA made the commitment following a presentation from Blue Road Capital Founding Partner John Duryea and Partner Luis Paz-Galindo.

 

MCERA isn’t the first public pension to invest in Blue Road Capital. At year-end 2014, the New Mexico Educational Retirement Board, Santa Fe, earmarked $30 million for Blue Road Capital, its maiden allocation to the firm after a six-year due diligence process, according to Pensions & Investments. The retirement board cited Blue Road Capital’s and Duryea’s evolution from the Osparie Special Opportunities Fund Core Illiquid, a natural resources portfolio.

 

According to public documents, NMERB also approved up to another $10 million to potentially be allocated to “secondary partnership interests offered by other limited partners in the [Blue Road Capital] fund.”  The documents indicate the Blue Road Capital portfolio has an estimated IRR of 20–25 percent and a likely exit of 2019, although those remarks were retracted.

 

Blue Road Capital is dedicated to investing in the commodities and agriculture supply chain.