California pension navigates alts landscape, adds $400m in credit

In its August meeting, the $52.8 billion Los Angeles County Employees’ Retirement Association (LACERA) trustees discovered that alternative investment portfolios are still being actively built as consultants such as Albourne deal with new due diligence realities. LACERA selected hedge fund firm Magnetar Financial to help round out growing $1.1 billion illiquid credit portfolio, which recently added Napier Park to manage $500 million in a portfolio of illiquid credit assets in a single-investor separate account structure. Magnetar was selected in May, but the $400 million allocation is being put to work this month. Also, the system is still working on building up its emerging manager program that may also be a component of the illiquid credit portfolio. On the hedge fund side, emerging managers are part of the equation too as consultant Albourne Partners researches potential strategies and funds for the roughly $2 billion diversified hedge fund portfolio as officials wind down the legacy fund of funds portfolio managed by Grosvenor. In a separate presentation to trustees, Albourne outlined that very little has changed in the vetting and due diligence process that has moved to a virtual environment with on-site visits being replaced by video calls. Very little has changed, according to the firm, which pointed out that managers will need to be more comfortable sharing documentation virtually and due diligence being conducted over multiple meetings rather than a single onsite meeting. At the same time, LACERA is searching for a real estate consultant that in turn it will likely vet remotely as the pandemic continues to rewrite the rules of pension investment management.

California pension navigates alts landscape, adds $400m in credit

Continue Reading With a Free Trial

Investcorp takes stakes in China healthcare companies

Former Bessemer CIO joins Bridgewater

Welcome to Alternatives Watch

Buck hires former AndCo exec for manager research

Hybrid VC Firm rolls out second cannabis fund

Finding the single source of truth in private equity data

California rapidly builds out private debt aims

Carlyle backs global health research in latest investment

Ex-CDPQ exec joins London infrastructure firm

Investcorp takes stakes in China healthcare companies

New finance fund offers unique access to lending strategies

Continue Reading With a Free Trial

Be an Alts Watcher

Subscribe to our mailing list and know first!

Fir Tree taps D.E. Shaw-backed Arcesium

Higher alts allocations providing equity performance buffer for institutions

Related Articles

Get our daily news digest in your inbox

Get our daily news digest
in your inbox