Los Angeles Fire & Police Pensions committed $300 million divided equally between Portfolio Advisors and Fairview Capital Partners for its private equity specialized manager program, said Ray Ciranna, general manager of the $25 billion pension fund in an email.
LAFPP's specialized private equity program invests in funds managed by local firms or minority, woman, lesbian, gay, bisexual, transgender, queer or disabled veteran-owned managers, that have fund targets of $500 million or less and that are first-, second- or third-time funds. The funds also LAFPP has committed about $620 million to 63 managers since 2007. The private equity target allocation is 12% of the fund and 10.1% currently is invested.
The board also renewed the contract of AllianceBernstein for three years ending Aug. 31, 2023 for a $178.1 million active domestic small-cap value equities portfolio. AllianceBernstein agreed to drop the base fee by nearly 29%, to 25 basis points from 35 basis points and, its performance cap by 6%,to 85 basis points from 90 basis points. Pension fund officials plan to review the portfolio's performance after one year. AllianceBernstein also manages $4.9 billion in various passive strategies for the pension fund.
Pension officials also renewed the contract of Westwood Management Corp. for a $194.2 million domestic small cap value equity investment mandate for three years ending Sept. 30, 2023.
LAFPP general investment consultant RVK assisted with both contract renewals.