LACERA, becoming a regular secondaries buyer, kicks in €70m to Rivean GP-led deal

The $72.4bn pension system is one of the most aggressive LPs in pursuing these types of deals.

Los Angeles County Employees Retirement Association committed up to €70 million in a GP-led secondaries deal from European mid-market specialist Rivean Capital.

In recent years, large LP organizations have made moves to become buyers in GP-led secondaries, usually taking part in consortiums of investors necessary to fill out large targets. LACERA has been one of the most aggressive LPs in building out its secondaries and co-investment programs, having completed several deals over the past year.

LACERA’s commitment to Rivean was completed in October, according to a board document announcing the transaction. It appears the commitment pertains to a continuation vehicle for Esdec Solar Group.

Rivean announced in December that it completed a continuation fund in December for Esdec, described as a global leader in rooftop solar mounting systems, according to a press release.

Rivean, which rebranded from its original name of Gilde Buy Out Partners in 2022, originally invested in Esdec in 2018, according to the press release.

LACERA did not respond to questions seeking details on the transaction by press time.

LACERA invested in the fifth fund from Gilde Buy Out Partners, which has a 2016 vintage year. The system also owns an Esdec Solar Group fixed income asset, documents show.

LACERA took the lead on at least two GP-led secondaries transactions this year, according to sister publication Secondaries Investor.

In June, LACERA committed $75.5 million to a continuation fund managed by Adelis Equity Partners that contains two in-vitro diagnostics companies. Earlier in 2022, LACERA was a co-investor in an Accel-KKR process that moved seven companies into a continuation fund.

At a November meeting, the $72.4 billion system’s investment staff discussed allocating up to 30 percent of its private equity portfolio to its co-investment and secondaries programs, one it manages in-house.

According to a November presentation, the co-investment and secondaries programs totaled 21 percent of the private equity portfolio’s NAV. Investment staff estimated the programs could reach 28 percent of the portfolio’s NAV by the end of 2024.

The in-house co-investment and secondaries program contains 10 investments with seven active GPs with a market value of $1.06 billion. The externally managed program holds 11 investments with a market value of $1.6 billion, according to the November presentation.

Investment staff also said in November the system was considering a secondaries sale of its own that could total between $500 million and $1 billion.