LA Retirement Unloads $1.4B of PE Fund Commitments

The Los Angeles County Employees Retirement Association (LACERA) has sold $1.4 billion of its private equity fund commitments on the secondary market amid an ebb in distributions.

LACERA, which manages $78 billion in assets, said in a new report that it had sold holdings in 17 private equity funds.

General partners have found it more difficult to exit their portfolio assets given high inflation, interest rates, and geopolitical events. This has had consequences for limited partners, who must reduce their alternative asset commitments to avoid being overweight in the asset class.

LACERA also announced that it has contributed $200 million to Partners Group’s Direct Infrastructure IV fund, which aims to invest up to $8 billion, as well as $50 million in a co-investment fund, Partners Group Rose.

The firm already raised $6.4 billion for its third strategic fund, which launched in 2022. This vehicle was accompanied by $2.1 billion in separate managed accounts and “bespoke client solutions” intended to invest alongside Fund III.

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