LACERA Adds $175M to Private Equity Portfolio

The $82.5 billion Los Angeles County Employees’ Retirement Association (LACERA) has allocated $175 million to two private equity funds, as detailed in recent board meeting minutes.

The LACERA board approved a $100 million commitment to Blue Sage Capital IV, a private equity fund targeting small-market buyouts in the U.S. industrial sector. In January 2025, Blue Sage Capital closed the fund at $618 million, surpassing its $400 million goal and more than doubling the size of its prior fund.

Blue Sage Capital IV targets investments in environmental solutions, niche manufacturing, and specialty services firms across North America, with a focus on Texas, the Southwest, and the Midwest.

LACERA’s trustees approved a $75 million secondary commitment to a special purpose vehicle (SPV) established to purchase an interest in an undisclosed business solutions enterprise, with the manager and vehicle names withheld.

The private equity commitments follow a $300 million allocation to the asset class from its January 2025 meeting. That session saw $2 billion deployed across private markets and hedge funds.

LACERA’s updated allocation targets, effective in 2025, increase credit strategies to 13% from 11% and hedge funds to 8% from 6%, as part of the $82.5 billion pension fund’s strategic shift.

LACERA’s portfolio dedicates 51.4% to growth strategies, including private equity, which totals $13 billion within its $82.5 billion AUM. Through Q3 2024, private equity delivered a 3.9% return.