The Los Angeles City Employees Retirement System will commit up to $30 million to private equity to two funds according to recently released July meeting documents.
The pension fund will allocate $20 million to ABRY Partners Advanced Securities Fund III. ABRY is already investing out of that Fund III which has a $1.5 billion target. The fund provides senior debt capital to media, communications, business, and information services companies.
LACERS’ will also be allocating up to $10 million to Oak HC/FT Partners debut fund. The fund will make investments in healthcare and financial technology companies. The fund has raised over $400 million according to SEC filings.
In addition to new allocations, meeting documents show the pension is also cleaning house. LACERS terminated its relationship with The Boston Company Asset Management, its emerging markets manager for underperformance. The investment manager had been “on watch” since 2012. The Boston Company has been replaced by Dimensional Fund Advisors for the Emerging Markets Equities Value mandate.
Documents also note that staff discussed the limited size of private equity allocations being recommended by Portfolio Advisors, LACERS’ recently appointed private equity consultant. The pension plans to schedule a discussion with Portfolio Advisors on future allocations, including LACERS’ status as a new investor.