Los Angeles Fire & Police Pensions expects to launch an RFP for at least one manager to run a new global credit mandate, said CIO Ray Joseph in an email.
The pension fund board added global credit as a new strategy to its $5.6 billion fixed-income portfolio at its meeting on Dec. 2.
The board is expected to choose the size of the mandate when it approves the RFP at a later date. LAFPP's general investment consultant, RVK, had suggested the board allocate 12.5% of its fixed-income portfolio to global credit. The timing of the RFP has not yet been determined, Mr. Joseph said. When approved by the board, the RFP is expected to be posted on the pension fund's website.
Separately, LAFPP committed a total of up to $135 million to two alternative funds. Staff reported that in September the board approved an up to $75 million commitment to LBA Logistics Value Fund IX, a value-added real estate fund managed by LBA Realty. Pension fund officials have invested with LBA Realty before, including up to $35 million to LBA Logistics Value Fund VII in 2019.
The board also committed $60 million to Summit Partners Growth Equity Fund XI. The board had originally approved an up to $80 million commitment to the fund but Summit Partners reduced LAFPP's commitment to $60 million due to oversubscription. The investment closed in October.
The pension fund has invested with Summit Partners in the past, including up to $20 million to Summit Partners Growth Equity Fund IX-A and up to $5 million to Summit Partners Venture Capital Fund IV-A in 2015.