Rialto Capital Receives $75M for RE Debt Fund from LA Water and Power
The Los Angeles Water and Power Employees’ Retirement Plan, which oversees $19 billion in assets, has added to its private market strategies with $550 million in commitments in July, according to recent board meeting materials,
A $75 million commitment was made to Rialto Capital Management’s Rialto Real Estate Fund V – Debt, a closed-end opportunistic fund that would invest in high yielding real estate credit investments.
The portfolio will consist of real estate debt asset-backed securities (conduit CMBS, SASS, CRE CLO) and senior secured and subordinated real estate loans, preferred equity, and other high yield debt, primarily in the United States, as well as standalone, portfolio, and platform-based real estate credit investments, loan portfolios, and asset backed real estate financings. This is the pension’s first investment in Rialto Capital Management,
Adams Street Global SMB WPERP Fund III ($150 million), Genstar Capital Partners XI ($100 million), Industry Ventures Secondary X ($75 million), Trivest Recognition Fund ($75 million), and Searchlight Capital IV ($75 million) were selected for the pension’s private equity funds.
The Adams Street Global Small Market Buyout WPERP Fund III is a one-of-a-kind fund that invests in direct small and mid-market buyout partnerships with fund sizes ranging from $250 million to $1.5 billion.
The LA fund’s latest Genstar commitment is Genstar Capital Partners XI, which, like previous funds, invests in middle market companies largely headquartered in North America.
Industry Ventures Secondary X focuses on purchasing secondary interests in technology venture-backed companies with little or no debt and revenues exceeding $20 million.
Trivest’s latest offering, Trivest Recognition Fund, is the first allocation for Los Angeles Water and Power. The strategy is to invest in value-oriented founder and family-owned businesses in North America.
Searchlight Capital’s latest offering is the pension fund’s second investment in the firm’s 2019 vintage fund. Searchlight Capital IV engages in value-oriented and distressed assets in the United States and Europe.