Pasadena-based Los Angeles County Employees Retirement Association Hires New Private Equity Management Firm

Pasadena-based Los Angeles County Employees Retirement Association (LACERA) has hired Hamilton Lane, an alternative investment management firm based in Pennsylvania, to manage its Private Equity Emerging Manager Program on a discretionary basis, committing $400 million over four years, according to a report by LACRA’s Board of Investment during a session on Feb. 9 said.

The report said under this mandate, the maximum size of target funds will be $400 million for venture capital strategies, and $1 billion for buyout and growth equity strategies.

LACERA issued a Request for Proposals for the position in June because the incumbent discretionary separate account manager, J.P. Morgan Private Equity Group, had estimated the program would be without capital to commit to private equity emerging managers before the end of the second quarter of 2022.

A report by Pensions & Investments said J.P Morgan did rebid in response to the RFP.

The report also said total value created by the portfolio was $900 million as of June 30, on approximately $450 million of called capital, according Christopher Wagner, principal investment officer at LACERA. The portfolio’s market value was $450 million in June.

The report of Board of Investment actions also showed the $75.6 billion Pasadena-based pension fund has also committed approximately $1.1 billion total to five alternative investment strategies.

LACERA committed $775 million to a global illiquid credit strategy managed by Varde Partners and overseen by LACERA’s dedicated managed account platform manager, Innocap; up to $110 million to TPG Real Estate Partners IV, up to $100 million to Thoma Bravo Fund XV, up to $50 million to Thoma Bravo Discover Fund IV, and up to $50 million to Storm Ventures Fund VII.

LACERA completed a $40 million co-investment alongside private equity manager Great Hill Partners, the report added. It also completed a secondary purchase commitment of up to $70 million in a special purpose vehicle managed by Clearlake Capital Group.

To learn more about LACERA, visit www.lacera.com.