Los Angeles City Employees' Retirement System committed a total of up to $225 million to nine alternative investment funds, staff reported.
The $22.4 billion pension fund committed up to $60 million to KPS Special Situations Fund VI, a buyout fund investing in restructurings, turnarounds and other special situations of manufacturing and industrial companies, and up to $20 million to KPS Special Situations Mid-Cap Fund II, which will focus on similar but smaller companies. Both funds are managed by KPS Capital Partners.
LACERS also committed up to $35 million Genstar Capital Partners XI, a North American middle-market and large-cap buyout fund, and up to $25 million to Genstar's affiliated opportunities fund, which will co-invest in Fund XI's larger transactions when additional capital is needed, effectively serving as an overage vehicle with a lower fee schedule, the LACERS staff report said.
LACERS committed up to $30 million to ICG Strategic Equity Fund V, which will invest in GP-led transactions on the secondary private equity market, up to $25 million in OceanSound Partners Fund II, a middle-market, U.S. technology-focused buyout fund, and up to $20 million to Ulu Ventures Fund IV, a seed and early-stage venture capital fund.
Pension fund officials also committed $5 million to Mayfield XVII, Mayfield's flagship venture capital fund that would invest in early-stage North American enterprise software, consumer, semiconductor, and human and planetary health companies; and $5 million to Mayfield Select III, an early-stage venture capital fund that would make follow-on investments in Mayfield XVII's portfolio companies as well as new investments falling outside the flagship fund's mandate, a staff report shows.