Los Angeles City Employees’ Retirement System committed up to $200 million to two private credit funds, according to a notice for board’s Oct. 22 meeting.
The $24.8 billion pension fund committed up to $100 million to HPS Specialty Loan Fund VI-L, a fund managed by HPS Investment Partners that focuses on first-lien senior debt for upper-middle-market companies across North America, Western Europe and Australia/New Zealand. The fund has a $7.5 billion target. HPS is a new relationship for LACERS.
LACERS also committed up to $100 million AG Direct Lending Fund V, a fund aiming to invest in a diversified portfolio of senior secured loans to lower-middle-market companies managed by Twin Brook Capital Partners, a subsidiary of TPG Angelo Gordon. The fund has a $3 billion fundraising target. LACERS has invested with TPG in the past, including in seven private equity funds and one real estate fund, TPG Real Estate Partners IV.
LACERS has a 16% target allocation to private equity and a 12% target allocation to real assets.
