Los Angeles City Employees’ Retirement System committed up to $20 million to structured debt fund ABRY Advanced Securities Fund III.
This is the $13.5 billion pension fund’s first investment with ABRY Partners. The commitment was made under a discretionary mandate with private equity consultant Portfolio Advisors.
ABRY executives expect to invest in a portfolio of more than 150 senior bank loans ranging from $10 million to $50 million per transaction and hold the positions at part until redemption.
Separately, the LACERS board hired CEM Benchmarking for a benchmarking study analyzing investment management and administration services costs as well as investment performance and risk, minutes from the board’s June 24 meeting show.
Also, board members at their July 8 meeting are expected to decide whether to launch an RFI for proxy-voting services, agenda materials show.
The contract of the incumbent, Institutional Shareholder Services, will expire Feb. 28. Staff of the $13.5 billion pension fund want to launch the RFI to establish the universe of qualified proxy-voting services providers.
“Staff is unaware of other firms that can adequately service LACERS’ needs,” a memo to the board states.
If the RFI reveals other qualified firms, staff will then ask the board to launch an RFP. Otherwise, staff will recommend ISS as a sole source contractor, the memo states. The RFI will be launched no later than July 21, with presentation of results to the board in the third quarter.