Los Angeles County Employees Retirement Association, Pasadena, Calif., is searching for an emerging private equity fund-of-funds manager to invest $150 million over three years on a discretionary basis, said Christopher J. Wagner, senior investment officer, private equity. The expected annualized internal rate of return is the Russell 3000 index plus 300 to 500 basis points over 10 years, according to the RFP.
The $42 billion system recently divided its $2.7 billion private equity program into two parts. Credit Suisse already serves as non-discretionary consultant to evaluate commitments with larger private equity and venture capital funds. New discretionary managers will run smaller private equity investments; a search for a second discretionary manager to run midmarket investments could be launched in the first quarter of 2008.
The RFP is available on the associations website at www.lacera.com. Proposals are due Jan. 25. The board is expected to make a selection in the second quarter.