The Los Angeles City Employees’ Retirement System (LACERS) has approved significant commitments totalling $367m to private credit and private equity funds, as outlined in the materials presented at its 25 February board meeting, according to a report by Pension & Investment Online.
The $24.9bn pension fund made the following allocations: up to $100m to Silver Point Specialty Credit Fund III, a direct lending fund managed by Silver Point Capital; up to $70m to 400 Capital Asset Based Onshore Term Fund IV, a private credit fund managed by 400 Capital Management; up to $50m to TPG Rise Climate II, a private equity fund focused on buyout, growth equity, and late-stage venture investments, with an emphasis on carbon reduction and climate solutions; and up to €46m (approximately $48 million) to HIG Europe Middle Market LBO Fund II, a European buyout fund managed by HIG Capital.
In addition, LACERS has allocated up to €28m (approximately $29m) to Nordic Capital Evo II Beta, a European middle-market buyout fund; up to $25m each to Biospring Partners Fund II and Centana Growth Partners III, both of which focus on growth equity investments, and up to $20m to Putnam Hill Private Credit Fund (Leveraged), a private credit fund managed by Putnam Hill Capital Partners.
Notably, Silver Point, Centana, 400 Capital Management, and Putnam Hill are new managers for LACERS.
The system previously committed $50m to TPG Rise Climate in 2021, €41m to HIG Europe Middle Market LBO Fund in 2020, $48m to Nordic Capital Fund XI in 2022, and $20m to Biospring Partners Fund in 2020.
As of 30 September LACERS’ actual allocations to private equity and private credit were 18% and 9.1%, respectively, while the targets for these asset classes are 16% and 12.75%.
