Los Angeles County Employees Retirement Association, Pasadena, plans to launch two searches: an RFP for a new cash overlay program and an RFI for a new real estate fund administrator, said Jonathan Grabel, chief investment officer of the $56.7 billion pension fund.
The cash overlay program manager would run only the excess cash above the pension fund's 1% cash target allocation. The cash overlay program's aim is to help LACERA maintain asset allocation targets, enhance rebalancing practices and reduce cash drag. LACERA is expected to launch the RFP this month with responses due in November. The board could select a manager as early as January or February of 2019.
LACERA also plans to launch an RFI for a firm to provide real estate administrative services to assist pension plan officials with managing its separate accounts and determine whether the pension plan could reap efficiencies through better data capture, Mr. Grabel said. Officials plan to release the RFI in November, with responses due in December and a possible selection as early as February.
Separately, the board in closed session at its Wednesday meeting invested up to $250 million in hedge fund Capula Global Relative Value Fund, managed by Capula Investment Management. Capula Investment is a new relationship for the pension fund. It also committed up to $100 million to Siris Partners IV, a buyout fund managed by Siris Capital Group. LACERA has invested with Siris Capital in the past, including in Siris Partners III.