LACERS commits $20m to ACON

The $12bn pension committed to ACON’s third fund, which closed on $751m in May.

The Los Angeles City Employees’ Retirement System has committed up to $20 million to ACON Equity Partners III, according to documents from a LACERS board meeting.
ACON Investments’ Fund III, which was launched during the first quarter of 2011, closed on about $751 million in May, Private Equity International previously reported. The fund was targeting $600 million and attracted roughly 65 percent of the capital from existing investors. Other limited partners in Fund III include the California State Teachers’ Retirement System, which committed $70 million, and the Los Angeles Fire & Police Pension System, which committed $10 million, according to Private Equity International’s Research and Analytics Division.
As of May, ACON had invested about 20 percent of its third vehicle in three investments.

Washington DC-based ACON was founded in 1996. The firm focuses on investments between $20 million and $150 million in the finance, consumer goods, energy, healthcare, media and retail sectors. Its investments have been made in North America, Latin America and Western Europe, according to PEI data.
ACON’s second fund closed on $374 million in 2006. Fund II was generating a 1.95x return multiple and 19.3 percent net IRR as of 31 December 2012, according to performance data from the California Public Employees’ Retirement System.

LACERS has about $12 billion in assets under management and a 12 percent target allocation to alternatives, according to its website. 

A new strategic plan for the pension fund could involve committing up to $350 million to private equity each year, PEI reported earlier. Hamilton Lane, the system’s consultant, suggested the plan to reduce investments with mega-funds and increase investments in distressed debt earlier this year.