Los Angeles City Employees Retirement System hired four managers as part of the $11.1 billion funds expansion of its corporate activist investment program to $450 million from $150 million. New Mountain Capital will run $50 million in domestic large-cap equity; CI-Blum Capital fund, $50 million in smidcap equity; Governance for Owners, $35 million in Western Europe equities; and Principle Capital Fund, $35 million in U.K. equities. The investment with Principle Capital Fund is contingent on Principle reaching certain fund-raising targets. Investment consultant PCA assisted.
The system also increased the mandates of existing corporate activist managers Relational, by $50 million for a total of $125 million; Knight Vinke, by $40 million to $73.8 million; and Hermes U.K. small-cap portfolio, by $40 million to $58.7 million.
Separately, the system committed up to $25 million to Vista Equity Partners III, a buyout fund; up to $10 million to Spire Capital Partners II, a small-market leveraged buyout fund; and up to $5 million to Relativity Fund, a midmarket buyout fund. PCA assisted with the Spire Capital and Relativity commitments, while Hamilton Lane assisted with the Vista commitment under the systems discretionary program.