LA Water and Power Pension Adds Two Kayne Anderson Real Estate Funds
The Los Angeles Water and Power Employees’ Retirement Plan approved $175 million in commitments to two Kayne Anderson real estate funds, expanding its U.S. property exposure despite holding slightly more than its target allocation.
The $26 billion pension system’s board of trustees approved a $100 million commitment to the Kayne Anderson Real Estate Core Fund and $75 million for Kayne Anderson Real Estate Partners Fund VII at its Aug. 26 meeting.
The commitments equal about 6.3% of WPERP’s existing $2.8 billion real estate portfolio. Property investments represent nearly 11% of total plan assets, slightly above the system’s 10% target, according to meeting documents.
The real estate portfolio returned 3.83% for the year ended June 30 after several years of pressure across commercial property markets. It gained 1.02% during the first six months of 2026.
Kayne Anderson Real Estate Core Fund, or KACORE, is an open-end core equity strategy investing in medical offices, senior housing, student housing and self-storage properties. The fund targets assets across the 50 largest U.S. metropolitan areas.
Kayne Anderson Real Estate Partners VII, or KAREP VII, is a closed-end value-add fund seeking under-managed, mismanaged or distressed properties. Its target sectors include medical offices, senior housing, student and multifamily housing, and light industrial assets.
KAREP VII will focus on the country’s 50 largest metropolitan areas and major university markets, giving the pension system exposure to properties that may benefit from operational improvements, repositioning or recovery from financial distress.
The commitments deepen WPERP’s existing relationship with Kayne Anderson and balance stabilized, income-producing assets in KACORE with the higher-return potential, and greater execution risk, of KAREP VII’s value-add strategy.
Connect Money is spotlighting rising stars who have made a valuable contribution to the alternative investments industry. Based on your nomination, we will recognize professionals who have significantly influenced both the workplace and community. The deadline is September 9. Click here to submit your nominations and help us highlight the next generation of leaders.