Los Angeles City Employees' Retirement System committed up to $50 million total to two alternatives fund.
It committed $25 million to KPS Capital Partners's distressed buyout fund, KPS Special Situations Fund IV, according to documents on the $12 billion pension fund's website.
The commitment was made through a discretionary relationship with the fund's private equity consultant, Hamilton Lane.
LACERS has not invested in previous KPS Capital Partners funds. KPS' fourth fund is expected to raise $3 billion to invest an average of $200 million to $350 million each in 12 to 15 companies located in North America or Western Europe.
The board also committed up to $25 million to domestic real estate debt fund, Torchlight Debt Opportunity Fund IV, managed Torchlight Investors. Torchlight is targeting $1 billion for its fourth fund, according to documents on LACERS' website. Courtland Partners, LACERS real estate consultant, assisted.
Separately, fund officials selected Acadian Asset Management, AQR Capital Management, Oberweis Asset Management, and Wellington Management as semifinalists for its active, core, non-U.S. small-cap equities investment manager portfolio, according to a memo to the board for its May 28 meeting. On Feb. 26, the board authorized staff and general investment consultant, Wilshire Associates, to conduct a search for one or more investment managers to run about $330 million total in the portfolio.
LACERS officials also selected Columbia Management, Prudential Fixed Income, and Standish Mellon Asset Management as semifinalists for its active emerging markets debt investment manager search. Also on Feb. 26, the board authorized staff and Wilshire Associates to search for one or more investment managers to manage approximately $200 million in that mandate.
In other news, the pension fund's net return was 5.8% for the quarter and 11.8% for the year ended March 31, according to a Wilshire Associates report for the board's May 28 meeting. Private equity was the best performing asset class followed by U.S. equity, non-U.S. equity, and fixed income.
Rodney June, LACERS CIO, did not respond to inquiries requesting further information by press time.