Los Angeles County Employees Retirement Association committed up to $150 million to Accel-KKR Capital Partners VI, a global buyout fund, said Jonathan Grabel, CIO for the $57 billion Pasadena, Calif-based pension fund.
LACERA has invested with Accel-KKR in the past, including a $50 million commitment to Accel-KKR Growth Capital Partners III in August.
LACERA has a $5.4 billion private equity portfolio and a 10% target allocation.
Separately, LACERA plans to invest up to $500 million with its existing real estate separate account managers, Mr. Grabel said. The amount to be invested and with which managers depends on the investment opportunities that present themselves, he said. LACERA's existing separate account managers are Clarion Partners, Heitman, Invesco, DWS/RREEF and Stockbridge.
The board of investments at its May 15 meeting also approved an update to its fiscal year 2020 real estate structure review. The update calls for LACERA to be a net seller during the fiscal year and so, "new investment by separate account managers will be contingent upon anticipated and realized sales using a ratio of 1:2," a staff memo said. "For every $1 dollar of new investment, $2 of sales should occur."
As a result, up to half of the new $500 million investment to real estate separate account managers, $250 million, will be allowed in anticipation of sales, but the remaining $250 million will be released only when "the cumulative realized sales from the separate accounts exceeds twice the amount of new investments, or $500 million," the memo said.
LACERA had $6.4 billion in real estate as of Sept. 30.
