LA Water & Power Commits $187 Million to Private Credit and Real Estate

The Los Angeles Water & Power Employees’ Retirement Plan has disclosed up to $187 million in commitments to three funds.

The Board approved a $42 million investment in opportunistic credit fund, Sixth Street TAO Partners. Also, within private credit $65 million was approved for VPC Asset Backed Opportunistic Credit Fund, managed by Victory Park Capital. The fund will lend “senior secured, highly collateralized asset backed loans to asset-rich companies that are in their early growth phase of business cycle”, according to meeting documents from the August 24 board meeting.

FPA Core Plus Fund VI-A was approved for an up to $80 million commitment. The core-plus real estate fund will invest in multifamily and mixed-use real estate in major markets within the United States.

As of June 30, 2022, the Retirement Plan has an actual and target allocation to private equity of 12.6% and 10% respectively.

The actual and target allocation to real estate was 8.9% and 8% respectively.

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