Los Angeles County Employees' Retirement Association, Pasadena, Calif., can buy and sell private equity limited partnership interests on the secondary market under the $38 billion retirement system's new private equity investment policy statement.
The new policy, adopted Feb. 8, means David Kushner, chief investment officer, can purchase interests on the secondary market in private equity partnerships in which the association is already an investor, according to the revised investment policy statement.
Under the new policy, Mr. Kushner has the authority to approve secondary market purchases that are up to the lesser of 50% of LACERA's original fund commitment, or no more than $50 million in purchase value.
How much LACERA will commit to private equity funds this year has not yet been decided, Mr. Kushner wrote in an e-mail. “LACERA is always looking at new commitments.”
Also a part of the new investment policy statement, Mr. Kushner relinquished to the investment board his authority to invest up to $75 million for each private equity commitment in follow-on funds.
The new policy adds new private equity suballocations — 16% to venture capital and 7% to special situations. Both had been the main component parts of the opportunistic suballocation, which has now been eliminated, according to a memo to the board.
Also, a private equity portfolio's exposure to a single manager is now limited to 10% of the portfolio's market value.
