LACERS Approves $50M for Private Equity in May 2025 Meeting

Key Takeaways

Sector: Real Estate, Technology Software & Gaming.
Geography: United States.

Analysis

The Los Angeles City Employees' Retirement System (LACERS) has announced a $50 million commitment to private equity funds, approved during its board meeting in May 2025. This move highlights the pension system’s continued strategy to strengthen its alternative investments portfolio and diversify beyond traditional asset classes.

The allocations include:

Up to $40 million to Hg Saturn 4 A, a European buyout fund managed by Hg Capital.
Up to $25 million to Mavik Real Estate Special Opportunities VS2, an opportunistic real estate debt fund managed by Mavik Capital Management.
A follow-on commitment of up to $10 million to Mayfield Select III, an early-stage venture capital fund managed by Mayfield Fund.

These commitments reflect LACERS' broader strategy to expand its exposure to private equity and credit opportunities, targeting a mix of geographies, asset classes, and fund stages.

As of February 28, 2025, LACERS reported actual allocations of 19% to private equity and 9.8% to credit opportunities, both exceeding their target benchmarks of 16% and 12.75%, respectively. This signals a robust appetite for alternative investments as a key pillar of long-term growth.

LACERS plans to commit between $600 million and $700 million to private equity throughout 2025, working with both established and emerging fund managers to capture value and manage risk.

These decisions are part of LACERS’ ongoing effort to align its portfolio with market opportunities while fulfilling its fiduciary duties to Los Angeles public employees and retirees.