PE funds backed by Los Angeles City Employees Retirement System in 2013 have matured, and this will be one of the stronger vintages.
LACERS in 2013 committed $185 million across eight private equity funds, the public pension’s largest annual commitment to PE (buyouts, controlled distressed debt, growth equity) since 2008.
All told, it has had $125 million drawn down and received $19.5 million in distributions, achieving a median net IRR of 13.5 percent, as of Dec. 31, 2017.
The median net IRR ranks fifth among the 10 vintage years from 2003 to 2013 (omitting vintage 2009, when LACERS committed to only a single fund).
This is our first opportunity to evaluate vintage 2013 funds, since these funds have had five years of maturation. The median net IRR ranks in the top quartile of all vintage years across all funds dating back to 2003.
Leading in net IRR in 2013 was KPS Special Situations IV at 26.9 percent. LACERS contributed $7.6 million of its $25 million commitment, which returned $2.3 million in distributions.
Apollo Investment Fund VIII had an IRR of 21 percent. The fund received LACERS’s largest commitment of that year, $40 million. Of that total, $27.4 million has been drawn and $3.8 million in capital returned.
High Roads Capital Partners II had an IRR of 18 percent. LACERS contributed $25 million of its $30 million commitment to the fund, and received $4.2 million in distributions.
All available numbers for LACERS go back to 1995. Since then, LACERS has received $4.5 billion from its $3.9 billion in commitments across 217 funds.