Los Angeles City Employees Retirement System committed $25 million to First Reserve Fund XII, a special situations energy focused buyout fund.
The commitment was made under private equity consultant Hamilton Lanes discretionary mandate. According to a memo attached to the $10.6 billion systems Tuesday board agenda, First Reserve XII has a $12 billion target, with a $16 billion hard cap. If the fundraising target is achieved, it would be more capital than the $12.7 billion total the firm has raised in its 11 prior funds.
First Reserve expects to take controlling interests in 18 to 25 global energy companies by making investments ranging from $50 million to $2 billion.
The system has made commitments to two prior First Reserve funds: $20 million to First Reserve X and $30 million to First Reserve XI.
Separately, the board renewed the contract of Capital Prospects, which manages $28 million in a large-cap equity emerging manager fund of funds.