US pensions approve $222m in commitments

Pensions in Los Angeles and San Francisco allocated $159m to private equity funds including Apollo's European distressed debt vehicle.

The Los Angeles County Employees' Retirement Association and the San Francisco Employees’ Retirement System last week approved a total of $222 million (€150 million) in commitments including $159 million to private equity.

Pasadena, California-based LACERA, which has approximately $38 billion under management, committed up to $100 million to energy-focused First Reserve’s 12th fund. The fund is targeting $12 billion with a hard-cap of $16 billion. If First Reserve succeeds in reaching its fundraising target, the fund will be the largest ever energy-dedicated vehicle.

SFERS approved a $30 million commitment to Towerbrook Capital Partner’s third fund which targets control-orientated private equity investments in large and middle market companies. The firm’s previous fund closed on $1.3 billion in 2006. The $16 billion pension fund also committed €20 million ($29 million) to the Apollo European Principal Finance Fund, a distressed debt fund targeting €1.5 billion.

In addition to it private equity investments, SFERS approved two follow-on commitments to co-investment programmes. An add-on commitment of $38 million to the CapMark High Return 50/50 co-investment programme brings the pension’s total to $111 million and an add-on commitment of $25 million to the CapMark Value 50/50 co-investment program brings the total to $189 million.

Capmark Investments manages real estate and mortgage-related investments in strategies including value-added and opportunistic equity real estate, commercial mortgages, investment-grade CMBS, REIT debt, B-notes, mezzanine debt, below investment grade CMBS, non-performing loans and collateralised debt obligations.