Indicative of a tight liquidity situation, the
The pension fund, which has $9.7 billion in total assets under management, took the unusual step of rescinding the pledge at a board meeting in January. Although the board had agreed in 2007 to a $5 million commitment to
At the same meeting, the limited partner decided to take up
“We are currently above our range, but are in the middle of working up an asset allocation review, so we don’t yet know what direction the board will pursue,” LACERS CIO Dan Gallagher told Buyouts, when asked if the private equity commitment pace will slow in 2009. The LP had an actual allocation to private equity of 9.5 percent, as of Sept. 30, 2008, a target of 8 percent and a range of 4 percent to 10 percent.
As of Sept. 30, LACERS’s cash position stood at only 0.5 percent, below its 1 percent target. Many pension funds and other institutional investors are strapped for liquidity these days, reflecting a lack of distributions from the private equity funds they back.
In 2008, the LP committed roughly $300 million to the asset class. It backs buyout, distressed, venture capital, mid-market growth and mezzanine funds. Hamilton Lane serves as its alternative investment consultant, with Pension Consulting Alliance providing specialized alternative consulting services.