Los Angeles City Employees’ Retirement System committed up to $10 million to new private equity firm Angeles Equity Partners’ first fund, Angeles Equity Partners I, said the agenda for the $14.4 billion pension fund’s Nov. 10 meeting.
The commitment was made through a discretionary mandate with its private equity consultant, Portfolio Advisors.
Angeles Equity Partners was formed last year by Jordan Katz and Tim Meyer, formerly of private equity firm Gores Group. Angeles Equity Partners I has a roughly $300 million fundraising target and will make control-oriented special situations investments in eight to 12 lower-middle-market industrial companies. LACERS will pay a 2% management fee on total committed capital during the investment period and 2% on the adjusted cost of all unrealized investments post-investment period. LACERS will also pay 20% carried interest with an 8% return hurdle. Moelis & Co. is the private equity firm’s placement agent.
Separately, the board is scheduled to decide whether to terminate Attucks Asset Management by letting its contract expire on Nov. 30. Attucks has managed a $41.6 million domestic small-cap fund-of-funds portfolio of emerging investment managers since November 2005. Attucks would be terminated for performance reasons. If the board approves the staff’s proposal to let Attucks’ contract expire, its assets will be parked in a passive small-cap core equity strategy benchmarked to the Russell 2000 index, managed by RhumbLine Advisers. This passive strategy would serve as a placeholder until a search for an active domestic small-cap fund-of-funds of emerging investment managers is launched in 2016.
Patrick Silvestri, Attucks chief investment officer, could not be reached for comment by press time.
In other action, LACERS officials will monitor real estate consulting firm Townsend Group and its new majority owner, NorthStar Asset Management Group, following NorthStar’s acquisition of an 85% stake in Townsend. “Staff does not anticipate an adverse impact on the LACERS account,” CIO Rodney June told the board, according to the Oct. 27 board meeting minutes.