Los Angeles City Employees’ Retirement System plans on Oct. 7 to issue an RFP for a master limited partnerships manager to run about $70 million, minutes from the board’s Sept. 8 meeting show.
The MLP mandate is a new strategy for the $13.9 billion pension fund. The allocation comprises 0.5% of total assets. Pension officials expect to make a selection in the first quarter of next year.
Separately, LACERS committed up to $20 million to Berkshire Multifamily Realty Income Fund, a new core-plus open-end real estate fund managed by Berkshire Group. This is a new relationship for LACERS. The open-end fund will be seeded with 11 properties with a $677 million gross asset value. Roughly 80% of the fund will be invested in high-quality, stabilized core properties and 20% will be in non-core, including development and value-added with leverage up to 40% of gross asset value. Berkshire seeks to raise $500 million for an initial closing.
Real estate consultant Townsend Group assisted.