Los Angeles City Employees' Retirement System plans to launch an RFP for a private equity discretionary manager, according to minutes of the $14.9 billion pension fund board's Aug. 23 meeting.
The contract of incumbent discretionary manager Portfolio Advisors was set to expire, but LACERS extended the firm's contract for an additional year while it conducts the search, according to the minutes of the board's Sept. 13 meeting, which were released at the same time as the Aug. 23 minutes. Portfolio Advisors' contract will now expire Jan. 24, 2018.
The staff had originally recommended renewing Portfolio Advisors' contract for an additional three years, but the investment committee recommended that the board launch an RFP to “evaluate the current marketplace of private equity consultants.”
LACERS' past practice has been to evaluate consultants for six years; Portfolio Advisors has been the consultant for about three years, Chief Investment Officer Rodney June told the board at the Aug. 23 meeting. No timetable for the RFP was set by the board.
Separately, LACERS committed up to $20 million in Asana Partners Fund I, a value-added real estate fund focused on investing in retail properties. The firm was formed in 2015. LACERS' real estate consultant, Townsend Group, assisted.