LACERS Reveals Nearly $400M in New Alternatives Investments
The Los Angeles City Employees’ Retirement System (LACERS), which oversees $23.8 billion in assets, has recently allocated approximately $400 million to new alternative asset investments.
Quantum Capital Group, a private equity firm specializing in energy investments, secured $110 million from recent allocations across multiple investment vehicles. The firm raised $50 million for its Quantum Capital Solutions II fund, which closed at $2.8 billion in late 2024, along with $10 million for a related co-investment vehicle. Additionally, its flagship Energy Partners VIII fund, valued at $5.25 billion, received $43 million, with another $7 million allocated to a co-investment fund.
Quantum Capital Group invests across the full energy value chain, encompassing traditional and emerging sectors such as oil and gas, midstream operations, thermal and renewable power generation, energy transition initiatives, and energy infrastructure.
LACERS has also committed up to $100 million to Intermediate Capital Group’s Senior Debt Partners Fund 5, which closed at $17 billion in late 2024. This fund focuses on providing first lien, senior secured loans to mid and upper-middle-market businesses based in Europe, often owned by leading private equity firms.
LACERS allocated $50 million to Stellex Capital Partners’ third distressed debt fund, which is targeting $2.5 billion with a $3 billion hard cap. Additionally, Mill Point Capital received up to $40 million for its third fund, which closed at $1.7 billion. Mill Point Fund III reached its hard cap just five months after its launch, following the success of the firm’s second fund, which closed at $886 million in 2021.
LACERS has also made several additional commitments to alternative investments, including $35 million to Principal Data Center Growth & Income Fund, focused on data center infrastructure; $35 million to WCP NewCold III, likely targeting logistics and cold storage solutions; and $25 million to Centre Lane Credit Partners III, a fund specializing in credit investment.