LACERA approves changes to private equity programme

The US public pension plans to increase capital deployment to co-investments and secondaries.

Institution: Los Angeles County Employees’ Retirement Association
Headquarters: Pasadena, United States
AUM: $59.96 billion
Allocation to private equity: 11.8%

Los Angeles County Employees’ Retirement Association has agreed to make several changes to its private equity programme, a contact the pension informed Private Equity International. The pension also plans to commit $1.6 billion to private equity for calendar year 2021.

LACERA’s changes to its private equity programme include:

  • An increase in maximum co-investment size from $40 million to $70 million.
  • Boost annual deployment pace to co-investments and secondaries from $350 million to $450 million.
  • Consider co-investment opportunities outside the United States.
  • Expand co-investment deal types to include pre-EBITDA companies.
  • Remove primary fund minimum capital invested requirements for secondary opportunities.

The $59.96 billion US public pension committed $70 million to secondaries vehicle, Ampersand Continuation Fund, as previously reported by Private Equity International.

As illustrated below, as of 30 September 2020, LACERA allocates 20 percent of its private equity portfolio to co‐investments, secondaries and fund‐of‐funds. The pension’s recent commitments have been to funds that focus primarily on buyout and venture capital vehicles across North America and Europe.

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