The Los Angeles County Employees Retirement Association (LACERA) has approved a $200 million commitment to Vision Ridge Sustainable Asset Fund IV, furthering its push into real assets aligned with global sustainability trends. The $82 billion pension system disclosed the allocation as part of its broader $12 billion real assets and inflation hedges portfolio, which posted a 3.3% return for the 12 months ending April. 

Managed by Vision Ridge Partners, Fund IV targets investments across food sustainability, renewable energy, and transportation electrification in North America, Europe, and Asia—areas of growing institutional demand amid decarbonization efforts and energy transition goals. 

The investment coincides with Vision Ridge’s recent launch of GSSG Chikuden, a joint venture with GSSG Solar aimed at acquiring, developing, and operating utility-scale battery energy storage systems across Japan’s power grid. 

The LACERA allocation comes as the pension fund nears its 15% target allocation to real assets and continues to explore opportunities to diversify manager exposure. Notably, the system is conducting a real assets emerging manager program search, negotiating with candidates to oversee a discretionary separate account as it builds out its long-term inflation-hedging strategies.