Los Angeles County Employees Retirement Association, Pasadena, Calif., hired PineBridge Investments to manage $1 billion in a high-yield separate account for the $66.4 billion pension fund, according to a closed session report from its April 14 meeting.
PineBridge was the only manager selected to manage the mandate following an RFP launched in July 2020, CIO Jonathan Grabel said in an email in response to questions. LACERA's target allocation to high yield is 3%, with a range of zero to 6%. LACERA had $2.2 billion in high yield as of Feb. 28.
LACERA also committed a total of up to $555 million to five alternative investment funds and three co-investments alongside approved alternative investment managers, the report said.
The pension fund committed up to $150 million to Hellman & Friedman Capital Partners X, a North America and Europe large-cap buyout fund.
LACERA also committed up to $110 million to TA XIV, a middle-market growth equity fund managed by TA Associates; and up to $40 million to TA Select Opportunities Fund II, which will recapitalize portfolio companies in other TA Associates funds.
The pension fund also committed up to $100 million each to Lightyear Fund V, a buyout fund managed by Lightyear Capital that focuses on financial services firms; and Veritas Capital Middle Market Fund, a buyout fund managed by Veritas Capital Fund Management that will invest in companies operating at the intersection of technology and government.
LACERA also co-invested up to $20 million each alongside Onex Partners and alongside Lightyear Capital. It completed a $15 million private equity investment alongside Storm Ventures.
Separately, the board also at its April 14 meeting hired Institutional Shareholder Services to provide full coverage proxy research and online proxy-voting services, and Glass Lewis for additional limited coverage proxy research services. The selections were the result of an RFP launched in November.