Los Angeles County Employees Retirement Association, Pasadena, plans to launch a search for a securities lending firm soon, according to board minutes of the $58.4 billion pension fund.
State Street Bank and Trust is LACERA's custodial bank and lending agent responsible for lending the pension plan's international equities, U.S. Treasuries, and U.S. agency securities. Goldman Sachs agency lending group is LACERA's domestic stocks and corporate bonds lending agent. State Street invests the cash collateral for both programs. They will be invited to rebid. As of April 30, LACERA's total lendable base was about $9.3 billion.
LACERA is launching the search to survey the market because the lendable asset size could potentially double as LACERA's global equity portfolio moves to separately managed accounts from commingled funds.
Responses would be due in September or October, with the board making a selection as early as February.
Separately, LACERA committed a total of up to $200 million to two private equity funds, said Steven P. Rice, chief counsel, in an email.
Pension fund officials committed up to $150 million to Redbird Capital Partners Series 2019, a long-dated private equity fund targeting companies in the communications, leisure, hospitality, sports, energy and industrial sectors. This is LACERA's first investment with Redbird Capital.
LACERA also committed up to $50 million to Atlantic Street Capital IV, a small buyout fund that invests in retail, health-care services and business services companies. The pension fund has invested in prior Atlantic Street funds, including Atlantic Street Capital III.