LACERS Commits $200M to Private Credit Funds

The Los Angeles City Employees’ Retirement System (LACERS) has committed a total of $200M to direct lending funds, as detailed in materials from its October 22 board meeting.

The commitments include $100M to AG Direct Lending Fund V and another $100M to HPS Specialty Loan Fund VI-L, both in the private credit space. Aksia assisted with the recommendations, which align with the pension’s 2024 strategic plan for the private credit program, adopted by the board on February 27.

The HPS investment marks the beginning of a new general partner relationship for LACERS, while TPG is an existing partner. LACERS has previously committed to seven private equity funds and one real estate fund managed by TPG, though this will be its first private credit commitment with the firm, according to Dakota data.

Per Dakota data, LACERS oversees $23.1B in assets. As of July 31, the system allocated approximately 8.74% to credit against a target of 12.75%.

For more public pension insights and a comprehensive library of public plan minutes, book a demo of Dakota Marketplace!