LA Pension Gives $425M Boost to Private Markets Portfolio

The Los Angeles Fire and Police Pensions (LAFPP) increased its private equity, real estate, and credit programs by $425 million between April and July, according to recent board meeting data.

The $31 billion pension fund allocated $350 million to private equity, including $200 million to Portfolio Advisors for an add-on allocation approved in June. LAFPP’s emerging manager-focused private equity specialized fund manager program was included in the investment.

Allocations of $50 million each were made to Mill Point Capital Partners III, CenterOak Equity Fund III, and Platinum Equity Small Cap Fund II.

Mill Point focuses on lower middle-market companies in the industrials, business services, and information technology sectors. CenterOak Partners recently closed its third fund at $1.1 billion, which is focused on making control-oriented investments in middle-market companies in the business services, industrial services, and consumer services industries. Platinum Equity’s fund is a buyout fund that focuses on lower middle market investments in North America.

In real estate, trustees authorized a $40 million investment in Westport Capital Partners NewCold III. The company has developed 14 cold storage warehouses in seven countries and has risen to become the fourth largest provider worldwide.

A $35 million allocation was made to Monroe Capital Private Credit Feeder Fund V, which focuses on direct lending to lower middle market companies.

The trustees also deliberated on potential modifications to the framework of the $3 billion real assets program. The plan proposed by RVK aims to reduce the allocation to REITs by 50% and increase private real estate holding to 8.5% from the current 7%. The proposal is to eliminate a 2% allocation to commodities and reallocate the funds towards infrastructure investments.