Los Angeles City Employees Retirement System committed $20 million to Hellman & Friedman Capital Partners VII, a large-cap and middle-market private equity fund, according to an agenda item for Monday’s board meeting.
The $8.2 billion system invested in two prior funds: $11 million in Hellman & Friedman Capital Partners V, which closed in 2004, and $20 million in Hellman & Friedman Capital Partners VI, a 2007 fund.
The latest fund is expected to raise $7 billion but has a hard cap of $10 billion to take controlling and non-controlling interests in companies in U.S. and Western Europe, with a small portion that can be invested in Eastern Europe, Asia and Australia.
Hellman & Friedman is committing $400 million, 5.71% of the committed capital, to the seventh fund. The firm is charging a 1.5% management fee of committed capital during the investment period and 0.75% of committed capital post-investment period and 20% of profits.
Hamilton Lane, the system’s traditional alternatives consultant, made the investment for LACERS; the system allows Hamilton Lane to make investments on its behalf.
