Los Angeles City Employees’ Retirement System announced private credit and private equity commitments totaling $367 million in materials for its Feb. 25 board meeting.
The $24.9 billion pension fund committed up to $100 million to Silver Point Specialty Credit Fund III, a direct lending fund managed by Silver Point Capital; up to $70 million to 400 Capital Asset Based Onshore Term Fund IV, a private credit fund managed by 400 Capital Management; up to $50 million to TPG Rise Climate II, a private equity fund that pursues buyout, growth equity and late-stage venture deals with a focus on carbon reduction and other climate solutions; up to €46 million ($48 million) to H.I.G. Europe Middle Market LBO Fund II, a European buyout fund managed by H.I.G. Capital; up to €28 million ($29 million) to Nordic Capital Evo II Beta, a European middle-market buyout fund; up to $25 million each to growth equity funds Biospring Partners Fund II and Centana Growth Partners III; and up to $20 million to Putnam Hill Private Credit Fund (Leveraged), a private credit fund managed by Putnam Hill Capital Partners.
LACERS previously committed $50 million to TPG Rise Climate in 2021, €41 million to H.I.G. Europe Middle Market LBO Fund in 2020, $48 million to Nordic Capital Fund XI in 2022, and $20 million to Biospring Partners Fund in 2020. Silver Point, Centana, 400 Capital Management and Putnam Hill are new managers for the pension fund.
As of Sept. 30, LACERS’ actual allocations to private equity and credit opportunities were 18% and 9.1%, respectively; their respective targets are 16% and 12.75%.
Private equity and private credit consultant Aksia assisted.
