Institution: Louisiana School Employees’ Retirement System
Headquarters: Baton Rouge, United States
Total AUM: $2.01 billion
Allocation to alternatives: 16%
Louisiana School Employees’ Retirement System committed $100 million across two private equity vehicles at its June 2021 board of trustees meeting. Both vehicles are managed by Morgan Stanley Alternative Investment Partners and represent a new relationship with the pension.
The commitments comprise $50 million to Private Equity Co-Investment Opportunities Fund II, which focuses on small- and mid-cap managers with mainly no annual management fee imposed on underlying co-investments.
The pension also plans to commit up to $50 million annually to LSERS/AIP Bespoke Private Equity Fund. This focuses on bespoke primary fund selections and provides an opportunity for LSERS to leverage Morgan Stanley Alternative Investment Partners’ established relationships with oversubscribed and invite-only private equity funds.
As illustrated below, LSERS allocates 4 percent of its full investment portfolio to private equity. The pension’s recent commitments to private equity have been to funds that employed a wide range of strategies primarily in North America.
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