Pension to invest $150m with emerging PE managers

The Los Angeles County Employees’ Retirement Association plans to increase its investments with emerging private equity managers and large cap funds.

The Los Angeles County Employees’ Retirement Association is looking for a private equity fund of funds manager to invest $150 million (€104 million) over the next three years with emerging managers, as well as an advisor to help access large-cap funds.

LACERA said it is seeking non-discretionary advisors to help the $40 billion pension plan access large cap funds, which it defines as buyout funds larger than $3 billion and venture funds larger than $500 million.

The pension fund is also looking for discretionary managers to help it increase its exposure to areas of the market that are “difficult to access”, namely buyout funds that manage between $100 million and $750 million, and venture funds that manage between $100 million and $300 million.

Advisors and fund of funds managers must have at least a five-year track record, must have committed at least $200 million to emerging managers within the past year, must have at least five institutional clients, one of which must be a public pension fund larger than $10 billion, and must have at least $1 billion of private equity assets under management.

In the past LACERA has invested in funds managed by Apollo Management, The Blackstone Group, CVC Capital Partners, Providence Equity Partners, Oaktree Capital Management and Permira Advisors.