Los Angeles Fire & Police Pensions reported a similar net return for its specialized private equity program designed for relatively new and diverse managers as its core private equity portfolio.
Specialized private equity earned a net internal rate of return of 11.7% as of Sept. 30, since its 1996 inception, while its core private equity portfolio earned 12% as of Sept. 30 since inception in 2007, the $27.8 billion pension plan reported.
The entire portfolio earned a net from inception internal rate of return of 12%. LAFPP had $2.8 billion in total private equity as of June 30.
"The effort and the little extra risk to invest in these specialized managers have given us incredible returns!" said Brian Pendleton, president of the board in a written statement.
LAFPP's specialized program invests in first, second or third funds that are no larger than $500 million in total capital commitments. The specialized program also focuses on firms that include minority, women, lesbian, gay, bisexual, transgender and queer or disabled veteran ownership. The specialized program also can invest with firms that are based in the city of Los Angeles or in California as well as in underserved markets.