Los Angeles City Employees’ Retirement System committed up to $35 million to two private equity funds, said notices to the board of the roughly $14 billion pension fund from its discretionary private equity consultant Portfolio Advisors.
The pension fund committed up to $25 million to Green Equity Investors VII and $10 million to Technology Crossover Ventures IX. Green Equity Investors VII is a buyout fund managed by Leonard Green & Partners. Leonard Green officials expect to make 15 to 20 investments ranging from $250 million to $750 million per transaction. LACERS invested in Green Equity Investors VI and Green Equity Investors V.
Technology Crossover Ventures IX is a projected $2.25 billion growth equity fund. LACERS previously committed a total of $69.5 million to TCV V, TCV VII, and TCV VIII.
Separately, LACERS is seeking to redeem its $46 million investment in open-end real estate fund Prudential Property Investment Separate Account II, according to the minutes of the March 22 board meeting. PRISA II has underperformed its benchmark since its 2004 inception, and Prudential is increasing PRISA II’s annual management fee to 117 basis points from 92 basis points on July 1. The new fee is consistent with fees charged by other value-added real estate funds but higher than core real estate funds, said a memo to the board from LACERS’ real estate consultant, Townsend Group.
Mayura Hooper, Prudential spokeswoman, declined to comment.