LPs

LACERA boosts venture, small market exposure with commitments

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  • Los Angeles County commits $200 mln to Carlyle U.S. Equity Opportunities Fund II
  • Carlyle Equity Opportunities Fund II targeting $2 bln for small, lower middle market buyout fund
  • $47.7 bln pension wants to increase exposure to small buyouts

The $47.7 billion retirement association approved commitments to Carlyle U.S. Equity Opportunity Fund II and Storm Ventures Fund V.

The Carlyle Group set a $2 billion target for its second U.S. Equity Opportunity Fund, which will make control investments in small and mid-market companies. While Los Angeles County has committed to several of the firm’s funds in the past, this is its first commitment to Carlyle’s middle market platform.

Storm Ventures, a Silicon Valley-based early-stage venture firm, will use its next fund to invest in enterprise startups in the mobile, software-as-a-service and cloud infrastructure sectors. The firm set a $180 million target for Fund V, according to Los Angeles County documents.

In January, Los Angeles County approved a private equity investment plan that included increasing exposure to small buyout funds among its long term goals. Less than 6 percent of the retirement system’s private equity assets were in small buyout funds as of June 30, according to the investment plan.

Los Angeles County had an 8.7 percent allocation to private equity as of Sept. 30, according to its website. The retirement system set an 11 percent target for the asset class, which includes its allocations to venture and special situations funds.