Los Angeles City Employees' Retirement System committed more than $130 million to private equity funds.
LACERS voted to commit up to €37.5 million ($43.8 million) to CVC Capital Partners VII, a European buyout fund managed by private equity firm CVC Capital Partners. The pension fund already has invested with five previous CVC European Equity Partners funds.
Another $40 million commitment was made to Glendon Opportunities Fund II, a special situations fund managed by Glendon Capital Management. LACERS previously committed $20 million to Glendon Opportunities Fund LP (2014 vintage), which has earned a net internal rate of return of 2.96%.
LACERS also committed up to $25 million to Palladium Equity Partners V, a buyout strategy managed by Palladium Capital Management. LACERS has invested with Palladium in the past, including Palladium Equity Partners III and Palladium Equity Partners IV.
Upfront Ventures VI, a venture capital fund managed by Upfront Ventures, formerly known as GRP Partners, will receive up to $15 million.
Venture capital fund Defy Partners I will receive up to $10 million. The firm was founded last year by Neil Sequeira, former general partner and managing director at venture capital firm General Catalyst, and Trae Vassallo, previously a general partner at venture capital firm Kleiner Perkins Caufield & Byers. It is a new relationship for LACERS.
All commitments were announced at the fund's July 11 meeting. They were made by LACERS private equity consultant Portfolio Advisors as part of its discretionary mandate.
The Los Angeles fund also could postpone its current RFP for a private equity consultant. The board is expected to decide Tuesday whether to extend the contract of incumbent private equity consultant Portfolio Advisors for another year, until July 11, 2018.