LA Fire and Police plans up to $90 mln for PE through year-end

  • Expects to make four commitments totalling up to $90 mln
  • Anticipates commitments to commodities, specialized managers
  • $18.8 bln pension has closed $197.5 mln in commitments YTD

The advisory firm will recommend the funds for LAFPP’s core private equity program, which accounts for roughly 88 percent of the commitments the retirement system closed in the last five years, according to the plan update.

The remaining 12 percent of LAFPP’s commitments went to “specialized managers,” the LAFPP’s term for GPs raising their first, second or third funds with a sub-$500 million target, according to the report. The program also directs commitments to funds targeting underserved markets, as well as industries in Los Angeles and California.

Portfolio Advisors plans to recommend at least one more fund for the LAFPP’s specialized manager program before the end of the year. The advisor is also conducting due diligence on two more specialized managers, the update said.

The retirement system’s investment pacing plan called for between $300 million and $350 million of new commitments this year.

Separate from its commitments to core and specialized managers, Portfolio Advisors also will recommend a commitment to a commodities-related fund, according to the update. LAFPP has been building its exposure to the sector since 2012, when it approved a program to develop a $160 million portfolio of commodities-related private equity over four to six years.

LAFPP has committed $149 million to commodities funds since the program’s inception, according to the update. The portfolio is valued at $31.3 million.

The $18.8 billion retirement system has been an active LP through the first half of the year, closing on $197.5 million in new commitments across 12 funds, according to the update.

The retirement system also will allocate up to $30 million to venture capital funds managed by Summit Partners and healthcare specialist 1315 Capital. Those commitments had not closed as of June 30, according to the update.

LAFPP’s exposure to private equity stood at 8.4 percent as of March 31, according to the report, which is on the lower end of its 7.5 percent to 12.5 percent target exposure range.