The Los Angeles County Employees Retirement Association has approved an additional $100 million commitment to its emerging manager programme, according to a spokesman for the pension.
The aim of the programme is to provide LACERA with exposure to “smaller, lesser-known firms and in some cases first time funds whose general partners acquired their experience working at more established firms”, according to pension documents.
Through the separate account managed by JPMorgan, the programme invests between $5 million and $15 million in 10 to 12 funds, primarily in the US, in a diverse group of sectors. The underlying fund sizes are less than $750 million for corporate finance funds and less than $300 million for venture capital funds.
Up to 30 percent of committed capital can be invested in secondaries, co-investments and non-US funds.
LACERA first established the programme in 2008, selecting JPMorgan to manage a $150 million allocation on a discretionary basis. As of August, JPMorgan has deployed the $150 million to 19 funds, with $62 million drawn down for investment.
LACERA intends to conduct a full review of the programme and issue a request for proposal in the “near future”, but decided to first extend the existing programme due to time constraints.
The pension said the programme’s early performance is “promising” but added “it is too soon to draw conclusions regarding JPMorgan’s long term performance”.
LACERA has a 10 percent target allocation to private equity and a 9.2 percent actual allocation as of 31 December 2012.