LA Retirement Allocates $1.2B to PE, Real Assets
The Los Angeles County Employees’ Retirement Association (LACERA) has recently boosted its allocations to private equity and infrastructure, with a special emphasis on renewable energy projects. These actions build on the fund’s prior investments in real estate and lending strategies, which began in 2021.
Three allocations were made to the private equity portfolio, including a $120 million commitment to SEP Diamond Fund, a $95 million ticket to Summit Partners co-investment, and $150 million to Mill Point Capital Partners III.
The SEP Diamond Fund, Seidler Equity Partners’ most recent offering, debuted this year. The aim is to provide long-term equity funding to middle-market founder-owned and family-owned businesses in collaboration with their owners and management teams.
Summit Partners, an existing portfolio manager, is well-known for its flagship strategy, which focuses on technology, healthcare, and life sciences, as well as growth products and services companies.
Finally, Mill Point Capital’s most recent fund focuses on private equity small buyouts in the business services, information technology, and industrial sectors in the U.S.
Within real assets, the pension fund approved two real asset allocations. A $220 million commitment was made to InfraVia European Fund VI, a fund focused on investment in energy, telecom, transport and social infrastructure in Europe and North America. A second allocation of $110 million was made to Green Oak Co-Invest.
In late August, the ARDIAN Infrastructure Fund VI received a $218 million commitment. The Ardian fund focuses on energy, transport, and telecommunications investments in Western Europe. A co-investment commitment of $109 million was also given to ARDIAN Infra LA CoInvest, a co-investment organization dedicated to LACERA.
A $147 million allocation went to Altor Climate Transition I, an Altor Equity Partners energy transition fund focused on industrial, consumer and business services primarily in Northern Europe, while the Altor ACT Feeder, a LACERA-dedicated co-invest vehicle, received a $71 million commitment.