Los Angeles City Employees' Retirement System plans to commit a total of $750 million to $850 million to private equity in 2024.
The private equity strategic plan adopted Nov. 28 by the board of the $21.2 billion pension fund calls for 10 to 15 commitments with a target size of $40 million to $75 million per commitment, excluding co-investments.
LACERS' 2024 private equity pacing plan is roughly the same as its 2023 plan, which provided for a total of $850 million in commitments in 2023. The pension fund has made a total of $430 million in total private equity commitments through Sept. 30.
The pension fund's $4.2 billion private equity portfolio represents more than 19% of total plan assets, which exceeds its 16% private equity target. Pension fund officials could seek a sale of private equity limited partnership interests on the secondary market, but during the meeting Aksia consultants said a number of other LPs are also trying to sell LP interests on the private equity secondary market because they are also overallocated to the asset class, which has resulted in discounted prices.
Separately, the board renewed Axiom Investors' contract to manage a $268 million active emerging markets growth equities portfolio that was set to expire Dec. 31.