Los Angeles Water & Power Employees' Retirement Plan committed $100 million to two alternative investment funds in closed session, according to the minutes for the board's Jan. 24 meeting.
The $14.3 billion plan committed $50 million each to LaSalle Asia Opportunity V, a real estate fund managed by LaSalle Investment Management, and Torchlight Debt Opportunity Fund VI, managed by Torchlight Investors.
Separately, plan officials extended for three years the contract of Pacific Asset Management, which runs a $143 million U.S. bank loans portfolio. The contract will now expire on April 30, 2021.
Pension fundofficials also agreed to a five-year contract with its new private equity consultant, StepStone Group. The board hired StepStone in November following an RFP. During contract discussions staff negotiated a 23% reduction in the original fee proposal.
The board also assigned its real estate consulting contract with Courtland Partners — which expires June 30, 2020 — to StepStone, which is acquiring Courtland. The pension plan had $687 million in real estate assets as of Dec. 31.