LA Fire and Police commits $50 mln across two managers

  • New commitments to American Securities, 1315 Capital
  • Both funds held final closes this year
  • LAFPP has 8.66 pct allocation to PE

Los Angeles Fire and Police Pensions secured $50 million of new commitments across two new funds, an investment disclosure in its most recent meeting materials shows.

The $22.3 billion retirement system committed $10 million to 1315 Capital’s second flagship fund, which recently held a first and final close on more than $300 million. 1315 Capital invests growth capital in healthcare companies, including pharmaceuticals and medical technology.

The firm’s debut fund closed on $200 million in 2016. The fund is still early in its investment period and has yet to generate meaningful returns, a June 30, 2017, report prepared for Los Angeles City Employees’ Retirement System says.

LAFPP also committed $40 million to American Securities’ new $7 billion private equity fund, which will invest in middle-market companies with strong existing management teams. American Securities will use the fund to invest $200 million to $600 million per deal.

The firm held a final close on American Securities Partners VIII in February. Fund VII, a $5 billion 2015 vintage, has yet to show meaningful returns.

Fund VI, which closed on more than $3.6 billion in 2012, was netting a 20.2 percent IRR as of March 31, 2017, according to New York City Employees’ Retirement System documents.

Both commitments, which the LAFPP board approved during closed-session portions of meetings in November and January, closed in February.

LAFPP had an 8.66 percent allocation to PE as of Feb. 28. The public pension system has a 12 percent target allocation for the asset class.