LACERS Commits $500M to Private Equity, Credit 

The Los Angeles City Employees’ Retirement System (LACERS) allocated further resources to private market managers in September ranging from large private equity funds to co-investment and lending strategies. 

Within private equity, a $150 million allocation was made to HarbourVest Broadway Co-Investment, which is managed by HarbourVest Partners, according to board meeting documents. Furthermore, Knox Lane’s most recent fund, KLC Fund II, received a $20 million commitment. The growth-oriented investment firm has already made investments in a variety of companies, and the fund closed in July with $1 billion in commitments. 

Thoma Bravo was granted two LACERS commitments. Thoma Bravo Discover Fund V received a $60 million commitment to pursue control buyouts in a variety of sectors, such as infrastructure, security software, application, and technology-enabled services. Employees’ Retirement System of Rhode Island and Los Angeles Fire and Police Pensions are among other investors in the fund.   

A $65 million commitment was made to the Thoma Bravo Fund XVI and Thoma Bravo Fund XVI-P. Fund XVI has already received commitments from the Oregon State Investment Council, Virginia Retirement System, and CPP Investments. 

An additional $200 million was allocated to the credit. The AG Direct Lending Fund V, a 2022 vintage of Angelo Gordon’s direct lending strategy, received the initial $100 million. 

HPS Specialty Loan Fund VI, which closed earlier this year with a total of over $21 billion, received an additional $100 million. The commitment is the result of a successful investment in a senior loan fund from the firm in 2010, which has since been liquidated and has a total value of $50 million. 

Currently, officials hold approximately $4 billion in private equity and $2 billion in credit opportunities, which have generated an annualized return of approximately 6.9% and 7.6%, respectively, as of July 31, 2024.