Updated with correction
Los Angeles Fire and Police Pensions committed up to a total of $60 million to two alternative investment funds, information on the $22.6 billion pension fund’s website shows.
LAFPP officials committed up to £24 million ($30 million) to middle-market buyout fund Livingbridge 7 and $30 million to One Rock Capital Partners III, a middle-market buyout fund.
Separately, as part of its rebalancing in March and April, pension fund officials invested an additional $50 million with its high-yield bond manager to take advantage of a decline in high-yield bond valuations, the memo shows. Staff also invested an additional $50 million in commodities index accounts, which include clean energy and water portfolios, and another $25 million to the global real estate investment trust index account due to declines in commodity and real estate investment values. Information on the managers could not be immediately learned.
Pension fund officials also lowered its investment return assumption to 7% from 7.25%. Plan actuary Segal recommended the change due to a decline in inflation over the past two decades. LAFPP last reduced its assumed rate of return — to 7.25% from 7.5% — in 2017.
