Los Angeles Fire and Police commits $95 mln to three PE funds

  • LAFPP backs funds from BC Partners, Gridiron, Lone Star
  • All three commitments are re-ups
  • Pension’s PE portfolio valued at $1.7 bln

Los Angeles Fire and Police Pensions inked three private equity commitments totaling $95 million, according to Oct. 20 meeting materials published by the $19.6 billion pension system.

The system re-upped $40 million each to BC European Capital X and Lone Star Fund X, in addition to a $15 million commitment to Gridiron Capital Fund III. All three commitments have been finalized.

BC Partners set a 7.7 billion euro target for Fund X for investments in 15 to 20 European portfolio companies, limited-partner memos show. The firm’s previous fund was netting a 15 percent internal rate of return and 1.3x multiple as of Dec. 31, according to a Hamilton Lane report for Teachers’ Retirement System of Louisiana.

Lone Star Funds, a $65 billion PE firm specializing in distressed assets, set a $6 billion target for its latest flagship fund. Fund X will write equity checks of as much as $1.2 billion, targeting 20 to 30 portfolio investments.

Lone Star’s previous fund, a $7.2 billion 2014 vintage fund, netted a 10.9 percent IRR and 1x multiple, a Hamilton Lane report for TRSL says.

Gridiron Capital set a $750 million target for Fund III, according to Los Angeles Fire and Police Pension documents. The middle-market firm’s $425 million 2012 vintage fund netted a 13.4 percent IRR as of Sept. 30, 2015, according to Montana Board of Investments documents.

Los Angeles Fire and Police Pensions had an 8.78 percent allocation to private equity as of Sept. 30, pension documents say. The portfolio is valued at roughly $1.7 billion.

Action Item: More about LA Fire and Police Pensions: www.lafpp.com/