The $9.6 billion Los Angeles City Employees’ Retirement System is seeking a general pension fund consultant to have broad oversight over alternative investments, including private equity, although the pension fund continues to rely on specialty consultants for its real estate and alternative investments.
Responses to the request for proposals are due Jan. 27, at 5:00 pm PST, with a contract start date of July 1, 2010. Duties will include recommending strategic asset allocation strategies; performance analysis of all asset types; advising on manager’s contracts; assisting in manager fee negotiations; and advising on new and specialized asset types and classes.
The pension fund has a 9 percent target allocation to private equity, with a range of 6 percent to 12 percent. The actual funded allocation stands at 9.1 percent, or $870 million in 80 commingled funds.
In August, the LP pledged up to $20 million to mega-fund Hellman & Friedman Capital Partners VII LP and up to $20 million to TA Associates’s mid-market growth capital and buyout vehicle TA XI. Other recent pledges include $10 million to Falcon Strategic Partners III, a pool earmarked for mezzanine investments in the lower middle market, and $20 million to Lindsay Goldberg III LP, earmarked for investments in North American manufacturing, financial services and health care companies.
In 2008, the LP committed roughly $300 million to the private equity asset class. It backs buyout, distressed debt, venture capital, mid-market growth, mezzanine, funds of funds and special situations vehicles.
Hamilton Lane serves as the alternative investment consultant to the LP, while Pension Consulting Alliance provides specialized alternative consulting services.