US - The Los Angeles County Employees Retirement Association (LACERA) has tendered for one or more specialist consultants to provide consulting advice on potential private equity co-investments.
The pension fund, which has about US$31.1bn in assets, is looking at a US$250m initial co-investment programme or about US$50m per year for five years.
LACERA said it was seeking firms that would provide “private equity co-investment adviser services, on a discretionary basis for global private equity co-investments”.
The co-investment programme would form part of the fund’s continuing strategy to broaden and develop a comprehensive private investment portfolio. The Board is tilting towards a captive co-investment fund but said it was willing to consider other alternative co-investment programme structures.
In June 2000, the fund implemented a long-term asset allocation plan which included a 7% allocation to alternative investments.
The fund currently invests US$1.6m in alternatives, split between acquisition/leverage buy outs, distressed debt, mezzanine debt, venture capital, fund of funds and special situations.
Asset allocation stands at 32.4% domestic equities, 28.4% global fixed income, 23% international equities, 9.1% real estate, 5.3% alternatives and 1.8% cash.
Private equity co-investments are direct non-control investments in privately held companies made alongside or in collaboration with a given private equity investment partnership.
Deadline for tender is August 3 with the search process being conducted in-house.
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