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LACERA co-invests with Leonard Green and Lightyear

The $63.8bn pension has been looking to increase its co-investment activity over the last year or so.

Los Angeles County Employees Retirement Association made $50 million in co-investments with two of its private equity managers, according to a document posted on its website.

During executive session of the $63.8 billion pension’s January 13 board of investments meeting, staff apprised the board of two co-investments.

The first was for $30 million alongside Lightyear Capital in a “registered investment advisory firm.”

LACERA and Lightyear both declined to comment.

Last year, Lightyear and Ontario Teachers’ Pension Plan acquired wealth management firm Allworth Financial, according to sister title PE Hub.

The other co-investment was a $20 million dollar investment alongside Leonard Green & Partners in a “healthcare software and service company.”

Last year, Leonard Green joined TPG as an investor in WellSky, a software provider of the post-acute care industry, according to PE Hub, in a deal that valued the company at more than $3 billion.

One source told Buyouts that Leonard Green offered LACERA a co-investment in WellSky. LACERA declined to comment and Leonard Green did not respond to a request for comment.

LACERA is an LP in at least two Lightyear funds and three Leonard Green funds, according to Buyouts data. Last year, it expanded its options for co-investment managers and also increased the amount staff can put into co-investments and secondaries after that program performed well, as Buyouts reported.

Action Item: read the report from the January 13 LACERA Board of Investments meeting here.