LA Water Targeting $525M to Private Equity; $300M to Private Credit; $400M to Real Estate

The Los Angeles Water & Power Employees’ Retirement Plan is looking to place up to $1.2 billion across private equity, private credit, and real estate in 2024, according to recent meeting materials.

In a presentation from consultant StepStone, the 2024 private equity pacing plan calls for $525 million in new commitments. $450 million across four to seven investments is being targeted for the Retirement Fund with an average investment size of $65 million. The Healthcare Fund is looking to add four to seven investments of about $10 million each to achieve the $75 million annual target.

Also presented by StepStone, up to $400 million is to be committed to real estate investments. Of the $400 million, $150 to $300 million across 2-3 investments will be allocated to Core, $0-75 million to Value, and $0-75 million to opportunistic real estate investments.

The private credit strategic plan was reviewed with consultant RVK. RVK anticipates annual commitments of $300 million through 2026 to achieve the 5% target by 2029.

As of December 31, 2023, the $20 billion pension fund allocates 13.3% to private equity with a target of 10%. The actual and target to private credit is 1.3% and 1%. The actual and target to real estate is 9.1% and 10%.

For more public pension insights and a comprehensive library of public plan minutes, we would love to offer you a free trial of Dakota Marketplace!