The Los Angeles Fire and Police Pensions earlier this month approved $65 million in new commitments across its core portfolio as well as the specialized-manager portfolio it created a year ago.
To its core portfolio, LAFPP added a $30 million commitment to global mega-buyout fund Clayton Dubilier & Rice VIII LP, which is targeting $7.5 billion and has already secured at least $2 billion in commitments, according to a regulatory filing. The $14.9 billion pension also approved a $20 million commitment to GI Partners Fund III LP, the third fund for GI Partners, a buyout firm with offices in Menlo Park, Calif., and London that typically makes investments of between $25 million and $250 million in management buyouts and turnarounds. GI Partners closed on $1.45 billion in July 2006 for its second fund; it’s targeting $2.5 billion for the successor vehicle.
LAFPP committed smaller amounts to managers in its specialized manager portfolio, signing off on a $10 million commitment to lower mid-market mezzanine fund Caltius Capital Partners IV LP, and a $5 million commitment to Saybrook Corporate Opportunities Fund LP, a new distressed debt fund. Caltius is targeting $400 million; Saybrook is targeting $500 million.
Dallas-based Aldus Equity Partners advised LAFPP on its core portfolio, which also includes a recent commitment to Levine Leichtman Capital Partners, a firm that is putting together a targeted $1 billion fund. Aldus advises on roughly 85 percent of LAFPP’s alternative investments and recommends commitments to funds larger than $1 billion.
La Jolla, Calif.-based StepStone Group, meanwhile, advised LAFPP on its specialized manager portfolio. StepStone’s mandate is to steer about $100 million of LAFPP’s capital into five to 10 funds per year, including sector-specific funds, geography-specific funds, and funds managed by spinout teams and emerging managers. Saybrook falls into the last camp; its founders most recently worked for Oaktree Capital Management. Meanwhile, Caltius Capital, which raised a $300 million third mezzanine fund with the help of Lazard in 2004, provides acquisition-related subordinated debt to companies generating $15 million to $250 million in revenue.
With its newest commitments, LAFPP has committed $212 million to private equity and venture capital investments in 2008, on it way to its annual commitment target of $500 million. Its target allocation for private equity is 10 percent.—C.L.