Los Angeles County Employees Retirement Association, Pasadena, Calif., reported it had committed a total of up to $825 million to two alternative investment funds.
The board committed $675 million to an illiquid credit fund managed by Waterfall Asset Management. The managed account will invest in asset-backed credit, loans, bonds and specialty finance mostly in the housing, commercial real estate, consumer and small-business sectors.
LACERA also committed up to $150 million to Accel-KKR Capital Partners VII, a middle-market buyout fund that invests in the information technology sector in the U.S. and Western Europe.
The board also approved an up to an $85 million purchase on the natural resources secondary market in TIAA-CREF Global Agriculture, a private agriculture fund that invests in row crops and permanent crops in the U.S., Australia and Brazil.
Separately, at Wednesday's meeting, the board voted to commit 4% to 5% of total assets annually over the next two years to private equity.
The $68.9 billion pension fund's board increased its target allocation range to a private equity subcategory made up of co-investments, secondaries and funds of funds to 10% to 30% from 10% to 25%. Both changes were made as a result its biennial structure review of its public equity and private equity assets. As of Oct. 31, LACERA had $35.1 billion in its growth allocation, which includes public and private equity.
Assisting were Meketa Investment Group, LACERA's general investment consultant; and StepStone Group, LACERA's private equity consultant.
