Los Angeles County Employees Retirement Association, Pasadena, Calif, committed or invested a total of up to $707 million to alternative investment funds, the $79 billion pension fund reported.
LACERA officials invested up to $250 million in Man AHL Alpha, a hedge fund managed by the Man Group. They also committed $150 million each to Kingswood Capital Opportunities Fund III, a buyout fund managed by Kingswood Capital Management focused on small buyouts in the consumer sector primarily in the U.S., and Lightyear Fund VI, also a buyout fund managed by Lightyear Capital that targets small buyouts of primarily U.S.-based companies in the financial sector.
The pension fund also made a $100 million co-investment in a financial services company alongside Centerbridge Partners and a $57 million co-investment in a professional services provider alongside Sterling Investment Partners.
Separately, the board at its Aug. 14 meeting, approved updated credit investment guidelines to align the board with the pension fund's strategic asset allocation that it modified in April, CIO Jonathan Grabel said. The new guidelines reflect the consolidation of illiquid and liquid credit into a single credit asset class.
LACERA has a 13% target allocation to credit. The guidelines also remove emerging markets debt from the credit benchmark and expand the pension fund's emerging manager program to all credit sectors from just the previous subcategory of illiquid credit.
