Los Angeles County Employees' Retirement Association (LACERA), the $9.5bn public sector pension fund, has allocated a total of $300mn to separate accounts with three of its existing managers. Capri Capital, Cornerstone Real Estate Advisers and Invesco Real Estate will have equal access to the allocation but investments must be split equally between LACERA’s risk profiles of core, opportunistic and value-added investments. It is expected that $150mn will be invested in the current fiscal year. The public sector pension fund has a target allocation of 10% to real estate and plans to increase its current allocation from 8.2% to 9.6% via investments made through the separate accounts.
LACERA is also planning to commit $175mn to co-investment opportunities or specialty commingled fund investments in the next 12 months. It is looking to commit capital across core, opportunistic and value added funds. The public sector pension fund is not looking to invest internationally, however it will be evaluating commingled fund investment opportunities in Latin America and follow-on investments in two Europe-focused managers.