LACERS outlines 2020 private equity pacing plan

Los Angeles City Employees’ Retirement System’s investment committee will consider boosting its private equity pacing plan at its Oct. 8 meeting, according to the meeting agenda.

LACERS’s pacing plan for its private equity asset class calls for $625 million to $675 million in commitments for 2020, up from the $550 million to $575 million proposed for 2019, according to the Private Equity Program 2020 Strategic Plan. The system recommends between 10 to 14 commitments of $50 million to $100 million a year, according to meeting documents.

The system expects a total of $560 million by the end of the fourth quarter, meeting documents show.

LACERS is recommending more investments in Europe and Asia for next year; to “increase exposure to buyouts relative to other sub-asset classes”; and to consolidate its investments with strongly performing managers, according to the strategic plan.

The investment committee is also planning to match or exceed its commitments to emerging managers next year, according to documents. LACERS is proposing $50 million to $75 million in investments to emerging managers in 2020, amounting to three to four commitments, between $10 million to $20 million, to new managers.

So far, LACERS has committed $38 million to three emerging managers in 2019, according to meeting documents. It’s evaluating another commitment that if closed would bring its total pledges to emerging managers to $50 million.

LACERS did not respond to requests for comment.

Action Item: View the strategic plan here: https://bit.ly/2IutMtG