OP&F has roughly $12 billion in assets under management. The pension fund’s current target allocation to private equity is 3 percent. As of Feb. 29, the LP has 2.93% of its portfolio, or roughly $351 million, invested in the space.
If it decides to raise the target allocation, the LP’s investment staff would likely recommend putting more money directly into U.S. buyout funds and scaling back its exposure to domestic funds of funds and Ohio-based general partners. OP&F’s exposure to secondary funds and international funds of funds would remain the same or possibly increase, according to David Graham, the pension fund’s communications manager.
Currently, the bulk of OP&F’s portfolio is invested in funds of funds and secondary vehicles. The LP has backed such funds of funds such as
About 20% of the state pension fund’s portfolio is invested in Ohio-based GPs, including
LA Fire pledges to large funds
With its newest commitments, LAFPP has committed $212 million to private equity and venture capital investments in 2008, on it way to its annual commitment target of $500 million. Its target allocation for private equity is 10 percent.
To its core portfolio, LA Fire added a $30 million commitment to global mega-buyout fund Clayton Dubilier & Rice VIII, which is targeting $7.5 billion and has already secured at least $2 billion in commitments, according to a regulatory filing.
The $14.9 billion city pension fund also approved a $20 million commitment to GI Partners Fund III LP, the third fund for
LA Fire committed smaller amounts to managers in its specialized manager portfolio, signing off on a $10 million commitment to lower mid-market mezzanine fund Caltius Capital Partners IV, and a $5 million commitment to Saybrook Corporate Opportunities Fund, a new distressed debt fund. Caltius is targeting $400 million; Saybrook is targeting $500 million. —Constance Loizos