In November 2010, Los Angeles City Employees’ Retirement System (LACERS) selected Wilshire Associates to provide it with full service general investment consulting services for a three-year term. This appointment was the result of a search that began in April 2010. At the time the RFP was issued, LACERS already had specialty consultants for real estate and alternative investments. It is advised by Courtland Partners on its investments in real estate and by Hamilton Lane on its private equity investments. It also employs the services of Pension Consulting Alliance (PCA) as a specialized fund investment consultant. Despite this, newly appointed Wilshire Associates will still have broad oversight over these asset classes.
Hamilton Lane, LACERS’s discretionary private equity consultant, has commitment limits of USD 25 million to new relationships and up to USD 40 million for follow-on funds. Commitments within the above limits require only LACERS investment staff approval, and only commitments greater than these limits, or recommended commitments that the investment staff disagree with, will need to go before the board.
The majority of LACERS’s investments are made domestically in the US, with a smaller portion allocated to Europe and elsewhere. LACERS invests in a variety of fund types but its preference is for buyout and venture funds, which make up most of its portfolio. As of Q4 2010, LACERS was no longer looking to invest in private equity funds of funds, but it was anticipating investing in new direct private equity funds over the next 12 months and was particularly interested in buyout, venture and special situations opportunities.
LACERS’s Specialized Alternative Investment Program, which PCA oversees, can constitute up to 10% of LACERS’s private equity portfolio. It is a non-discretionary relationship, with all investment recommendations made by PCA requiring full board approval prior to investment.
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