The Los Angeles City Employees’ Retirement System (LACERS) committed a total of $395.1M to several funds in private equity, private credit, and real estate, and disclosed its performance review for the third quarter of 2024.
Per agenda materials related to its January 14 board meeting, the pension allocated $43M to Quantum Energy Partners VIII with another $7.14M through its co-investment feature; $50M to Quantum Capital Solutions II with another $10M also through co-investment; $40M to Mill Point Capital Partners III; $50M to Stellex Capital Partners III; and $25M to Centre Lane Credit Partners III. All five strategies are buyouts in the lower middle to middle market range.
For private credit, LACERS allocated $100M to ICG Senior Debt Partners Fund V-C (USD Leveraged) SCSp, while for real estate, the pension allocated $35M each to Principal Data Center Growth & Income Fund and WCP NewCold III.
Additionally, the $25B California-based pension conducted a review of its Q3 2024 portfolio performance with general consultant NEPC, noting an overall variance in performance across different asset classes, with equities showing strong performance in certain sectors, while fixed income remained volatile despite Fed Fund rate cuts. In private markets, the pension saw a 10-year IRR of 10.7% for its private equity policy, and a 10-year net return of 5.6% for real estate. As of September 30, 2024, LACERS said it allocates 18% of its portfolio to private equity and 11.2% to real estate, against 17% and 12.5% policy targets, respectively.
