LACERA earmarks up to $200 million for 2 private equity managers
By Arleen Jacobius | February 21, 2013 4:10 pm
Los Angeles County Employees' Retirement Association, Pasadena, Calif., committed up to $150 million to private equity fund Silver Lake Partners IV and up to $50 million to Riordan, Lewis & Haden Equity Partners' RLH Investors III, said David Kushner, chief investment officer of the $41 billion pension fund in an e-mail.
LACERA is an investor in other Silver Lake funds, including $60 million to Silver lake Partners III.
The Silver Lake Partners IV fund has a $7.5 billion target and a $10 billion cap.
RLH Investors III plans to invest in domestic lower-middle-market companies. LACERA committed $10 million to RLH II.
Separately, the board amended its limited partnership agreement with activist investing fund Relational Investors XVI to remove the minimum market capitalization limit of $5 billion for a stock to be purchased in its large-cap portfolio investments, subject to the LACERA legal office's approval. Relational Investors requested the change because it is merging its midcap and large-cap strategies, according to a staff memo to the board. Relational is merging the strategies because the “demand on its resources of managing two separate strategies did not allow for an efficient allocation of those resources,” the memo stated.
In other action, the board requested a report on Cornerstone Real Estate Advisers, one of its real estate managers. National Labor Relations Board Acting General Counsel Lafe Solomon authorized the filing of a complaint against the on-site management company, Hostmark Hospitality Group, which manages the hotel for Cornerstone, for allegedly violating the rights of employees working at an Embassy Suites hotel in Irvine, Calif., which is owned by a Cornerstone fund, Cornerstone Hotel Income and Equity Fund II. LACERA is an investor in the fund.