LACERA commits $225m to PE, VC

The $39bn retirement system invested in vehicles managed by Oaktree Capital Management, GGV Capital and Institutional Venture Partners.

The Los Angeles County Employees Retirement Association approved three fund commitments at its Board of Investments meeting last week, investing $225 million across two venture capital vehicles and a private equity fund. 

The $39 billion retirement association committed $100 million to Oaktree Capital Management’s ninth opportunities fund, which is targeting between $4 billion and $6 billion for distressed debt opportunities. Oaktree has already received commitments from the Massachusetts Pension Reserves Investment Management Board and the Texas County & District Retirement System.

The firm’s previous opportunities fund, which raised $4.4 billion in 2009, was generating a 1.04x total value multiple as of 31 December, according to Oregon Investment Council Documents. The documents did not disclose an internal rate of return because the fund is less than three years old. 

In addition to Oaktree, LACERA also committed to two venture capital funds, GGV Capital IV and Institutional Venture Partners XIV. The retirement association investment strategy groups venture capital with private equity, according to LACERA’s policy statement. 

GGV Capital typically invests between $5 million and $25 million in expansion stage companies with a focus on the consumer growth, healthcare, infrastructure, internet and digital media, software and services sectors. The firm maintains offices in Menlo Park, Shanghai, Singapore and Beijing. 

Institutional Venture Partners was founded in 1980 by Reid Dennis. The Menlo Park-headquartered firm manages $3 billion in committed capital, targeting investments between $10 million and $100 million in growth equity or late-stage venture capital transactions.

LACERA has a 10.1 percent allocation to private equity on a 7 percent target as of 31 December, according to its website.