Los Angeles County Employees Retirement Association's board invested or committed up to $550 million to two alternative investment strategies, said Jonathan Grabel, CIO of the $53.6 billion Pasadena, Calif.-based pension fund.
Pension fund officials invested up to $400 million to Polar Asset Management Partners' hedge fund strategy and committed up to $150 million to One Rock Capital Partners III, a middle-market buyout fund.
Separately, pension fund officials temporarily expanded Mr. Grabel's delegated authority. Currently, the CIO has authority over certain private equity commitments with existing managers, secondary sales, co-investments and rebalancing. The CIO's temporarily expanded authority gives Mr. Grabel discretion over most investment matters. The CIO does not have authority to modify LACERA's strategic asset allocation, any investment policies, or to its investment model. His authority is subject to a number of controls, including concurrence from the CEO Santos H. Kreimann, Board of Investments Chairman David Green and Board of Investments Vice Chairman Herman B. Santos, as well as the support of asset class consultants.
"This recommendation addresses the unique aspects of the current situation during which the (board of investments) may have limited capability to assemble and equally important when unique investment opportunities may present themselves, perhaps on short notice and with a limited window subject to performance and percentage and/or dollar limits," a staff report to the board said.
Separately, LACERA also gave Mr. Kreimann emergency purchasing authority up to and including a total of $1 million above his existing authority of $150,000 for goods and services deemed necessary by the CEO to address the COVID-19 emergency. This purchasing authority is subject to consultation with Mr. Santos and Board of Retirement Vice Chairwoman Vivian H. Gray.
