LACERS slates $45 million for private equity, taps NEPC as consultant

Los Angeles City Employees' Retirement System committed up to $45 million to three private equity funds, according to notice for the board's June 13 meeting from Portfolio Advisors, LACERS' private equity consultant.

The pension fund committed up to $25 million in New Enterprise Associates 16, a multistage venture capital fund. The fund invests in technology and health-care companies across all stages of the business growth cycle, including the initial seed stage.

LACERS also committed up to $10 million to Oak HC/FT Partners Fund II, a venture capital growth-equity fund managed by Oak Investment Partners. The fund invests in late-stage growth-equity investments in the health-care and financial technology sectors.

The pension fund also committed up to $10 million in ABRY Senior Equity V, a special-situations fund managed by ABRY Partners. The fund invests in senior equity securities of lower middle-market companies within the media, communications, information and business services sectors.

LACERS has invested with all three managers in the past.

Separately, LACERS hired NEPC as its general investment consultant, contingent on a renegotiation of fees, according to the minutes for the board's May 23 meeting.

The selection was made following an RFP launched by the $15.7 billion pension fund in May 2016. On Jan. 10, the board revised the search process. It authorized the investment committee to interview the semifinalists and propose one or more finalists for the board's consideration. The other semifinalists were Aon Hewitt Investment Consulting and Verus Advisory. Wilshire Associates was the Incumbent.