Los Angeles City Employees’ Retirement System committed up to $35 million to NREP Nordic Strategies Fund IV, a real estate fund, according to a notice released by the $18.3 billion pension fund's board.
The non-core fund would invest in Denmark, Finland, Norway and Sweden. It is the pension fund's first investment with NREP. Pension officials made the commitment Oct. 22 in closed session.
Separately, the board at its Dec. 10 meeting selected finalists for its active U.S. small cap equities manager search, meeting minutes show. They are Copeland Capital Management for a core mandate; EAM Investors and Granahan Investment Management for a growth portfolio; and Bernzott Capital Advisors and Segall, Bryant & Hamill for value. LACERS launched the search for managers to run a total of up to about $648 million.
LACERS also adopted its private equity program strategic program, which includes committing $625 million to $675 million within 10 to 14 commitments. The 2020 plan includes selective international investments, primarily in Europe and Asia; increased exposure to buyouts and decreasing investment in venture capital; consolidation commitments with top-performing managers; and possible investment in strategies designed to outperform in down markets such as value-oriented, turn around and distressed.
LACERS had $2 billion in private equity as of June 30, with 56.4% of the portfolio in buyouts, 13.3% in venture capital, 12.5% in growth equity, 9.4% in credit/distressed and 8.3% in other strategies, including natural resources and secondaries.