Searches and Hires

L.A. Fire and Police hires AEW, Cohen & Steers for real estate, commits up to $110 million

Los Angeles Fire & Police Pension System hired AEW Capital Management to run a $322 million real estate separately managed account, according to a staff report to the $21.9 billion pension fund board.

AEW replaces Sentinel Trust Co., whose contract was set to expire Dec. 31, 2018. The selection was made following a search launched in March.

Separately, the board hired Cohen & Steers Capital Management (CNS) to run half of a $345 million domestic real estate investment trusts portfolio currently managed by the incumbent Principal Real Estate Investors, said Raymond Ciranna, general manager in an email. Principal will continue to manage the other half of the mandate, Mr. Ciranna said.

"We split the allocation to diversify our risk between two REIT managers," Mr. Ciranna wrote.

The selection was made following an invitation-only search launched in the spring. General investment consultant RVK assisted.

Principal's contract is set to expire Nov. 30, 2019.

The board also committed up to a total of $110 million in closed sessions to five private equity funds, according to a report to the board. It committed up to $40 million to GTCR Fund XII, a buyout fund; up to $25 million to Windjammer Senior Equity Fund V, a middle-market buyout fund managed by Windjammer Capital Investors; up to $20 million to venture capital fund Institutional Venture Partners XVI; and up to $15 million to Carrick Capital Partners III, a buyout fund; and up to $10 million to NMS Capital III, managed by New Mainstream Capital. LAFPP has invested in prior GTCR, Institutional Venture Partners, New Mainstream Capital and Carrick Capital Partners funds. Windjammer is a new relationship.