Los Angeles City Employees' Retirement System plans to commit between $600 million and $700 million to private credit in 2025, with a $650 million target.
Pension fund officials expect to commit between $25 million and $150 million each to between nine and 12 private credit managers in 2025. Currently, LACERS' private credit portfolio is all invested in direct lending, but pension plan officials expect to expand into satellite strategies such as specialty finance and distressed/special situations.
The $25 billion pension fund expects to commit a total of $3.9 billion over five years, according to the pacing plan developed by consultant Aksia and staff. LACERS expects to hit its 3.75% private credit target allocation by 2031, according to the plan adopted by the board at its Jan. 28 meeting.
LACERS has $520 million allocated to opportunistic debt and private credit.
