Los Angeles City Employees’ Retirement System committed up to $40 million to private equity fund Energy Capital Partners III, a buyout fund that invests in large energy companies and has a $5 billion target, according to materials on the $11.9 billion pension fund’s website.
LACERS previously committed $25 million to the private equity firm’s Energy Capital Partners II in 2009.
The firm expects to invest in U.S. companies or create startup firms in the energy sector. Energy Capital expects to invest in 10 to 20 companies with equity investments ranging from $100 million to $500 million. The firm’s exit strategy is through sales or public offerings of master limited partnerships.
Separately, LACERS officials selected ING Investment Management, Sankaty Advisors and Symphony Asset Management as semifinalists for an approximately $65 million active long-only U.S. bank loan investment. LACERS issued an RFP in November. Wilshire Associates, its general consultant, is assisting.