The Los Angeles City Employees’ Retirement Service (LACERS) disclosed four commitments totaling up to $70 million in advance of the pension fund’s board meeting on Tuesday.
The $16.7 billion US public pension decided to invest up to $40 million in American Securities Partners VIII and up to $10 million each in 1315 Capital II, Mill Point Capital Partners and Thoma Bravo Discover Fund II. Portfolio Advisors, LACERS’ private equity consultant, recommended each commitment.
Mill Point Capital is the only new general partner relationship for LACERS, as the pension fund has invested in previous vehicles managed by the other three GPs. Though it is too early to ascertain meaningful performance data for many of its past investments with these managers, LACERS did earn a 23.8 percent net IRR on its 2016 commitment to American Securities Partners’ seventh fund.
LACERS has a 9.8 percent allocation to private equity, slightly below its target allocation of 12 percent. Platinum subscribers may click here for the pension’s full profile, including key contacts, allocation strategy and fund investments.