LACERA hikes target allocation to private equity

The US public pension plans to increase its exposure to the asset class.

Institution: Los Angeles County Employees’ Retirement Association
Headquarters: Pasadena, US
AUM: $67.9 billion
Allocation to alternatives: 26.1%

Los Angeles County Employees’ Retirement Association approved an increase to its private equity target allocation from 10 percent to 17 percent at its May 2021 investment board meeting, a contact at the pension confirmed to Private Equity International.

This increase in target allocation will provide a higher probability of LACERA achieving its 7 percent target return. The $67.9 billion US public pension also recently approved a €100 million commitment to the latest fund from GHO Capital Partners, as previously reported by Private Equity International.

As illustrated below, LACERA currently allocates 13.1 percent of its investment portfolio to private equity. As of 31 March, the value of its private equity portfolio was approximately $8.9 billion. The pension’s chief investment officer is Jonathan Grabel.

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