Los Angeles City Employees' Retirement System on Tuesday revised its private equity investment policy, increasing the maximum commitment its consultant can make without board approval to $150 million for new and existing managers.
Before the $22.8 billion pension fund's board made the change, its private equity consultant, Aksia TorreyCove had the discretion to commit up to $50 million for new partnerships, and up to $100 million for existing general partners without board preapproval. Staff proposed the change based on its research of peer U.S. public pension plans and discussions with Aksia executives.
Separately, the board approved submitting a comment letter to the Securities and Exchange Commission supporting its Feb. 9 proposed rule change aimed at enhancing the regulation of alternative investment managers, improving transparency and reducing potential conflicts of interest.
"Given the increasingly important role that private market investments play in the asset allocations and funding targets of institutional investors like LACERS ... the proposed rules are essential to protect the right of investors to access information critical to make informed investment decisions," LACERS said in its comment letter.
