Los Angeles Fire & Police Pension System searching for advisors

by Dami Sogunro

  • 08 Oct 2009
  • PE

Los Angeles Fire & Police Pension System (LAFPP) is currently in the process of making a number of changes to the consultants that advise it on both its general investments and its investments in private equity. Following an extensive search, the USD 11 billion retirement system, which has a 10% target to private equity, will be looking to make the appointments in the coming months.

LAFPP recently extended the three-year contract of its general consultant, Pension Consulting Alliance (PCA), by six months. The retirement system will shortly be interviewing a number of firms that applied for the general consultant mandate. The six firms up for consideration are Mercer Investment Consulting, New England Pension Consultants, Wilshire Associates, RV Kuhns and Associates, Callan Associates and incumbent consultant, PCA.

Following the cancellation of its contract with Aldus Equity (which had been its advisor since 2007) earlier in 2009, StepStone Group, which was originally handling a special mandate focusing on emerging managers, funds with a specific geographic focus and smaller vehicles, has stepped in to cover Aldus Equity’s duties temporarily. LAFPP has since been in search for a sole private equity consultant to oversee the entirety of its private equity portfolio, a change from its previous policy of employing two private equity advisors.

The Los Angeles retirement system recently narrowed down its search for its sole private equity advisor. There were originally 19 firms which responded to the RFP, and this list has now been shortened to Hamilton Lane, Wilshire Associates, Credit Suisse Customized Fund Investment Group, Ennis Knupp and Associates, New England Pension Consultants, Portfolio Advisors, Cliffwater and Macquarie Funds Group. LAFPP is currently at the stage of checking the references of these firms and, alongside PCA, it will begin the interview stage in the coming weeks. The system’s board will also be considering allowing the eventual private equity consultant to operate on a discretionary basis as opposed to its previous private equity consultants, which operated on a non-discretionary basis.

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