Los Angeles County launches RFP for help in secondary sales

Los Angeles County Employees Retirement Association, Pasadena, Calif., launched an RFP for a bench of private equity secondary advisers to help it sell limited partnership interests on the private equity secondary market, the RFP shows.

LACERA officials plan to hire three to five firms to lead an institutional sale process for dozens of limited partnership interests valued in the hundreds of millions of dollars, according to LACERA agenda materials for the board's Jan. 10 meeting.

LACERA's $5.3 billion private equity portfolio currently includes about 130 limited partnership interests valued at $1.4 billion in funds of general partners that are no longer a core part of LACERA's ongoing strategy, according to the RFP.

"LACERA is exploring a sale of all or a portion of those interests to streamline the portfolio, reduce administrative burden, and to allow resources to be fully dedicated to key relationships," the RFP states. In the future, LACERA may hire a secondary private equity market adviser to help pension fund officials buy private equity limited partnership interests, the RFP states.

An intent to respond is due by 3 p.m. PST on Feb. 5, with RFP responses due by 3 p.m. PST on Feb. 26. LACERA officials are expected to announce a selection by June 15. The RFP is located on LACERA's website.

Separately, LACERA plans to target total private equity commitments of $1.5 billion in 2018; LACERA officials expect to increase exposure to global funds. Over the past five years, LACERA commitments have been approximately 70% to buyouts and 82% to domestic managers. LACERA has a 10% target private equity allocation.