GLP Capital Partners (GCP) is planning to raise $2bn (€1.6bn) for its value-add US industrial fund GLP Capital Partners IV, according to sources.

The Los Angeles City Employees’ Retirement System (LACERS) disclosed in a meeting document that it has approved a $40m commitment to the fund. The commitment by LACERS as part of the pension’s fund plan to increase its exposure to industrial real estate while it exits one of its core plus open-ended funds.

GLP Capital Partners IV expects to invest in assets that can produce 11% to 13% internal rate returns, according to people familiar with the matter. With leverage, the fund is expected to have a $5bn portfolio of industrial and logistics assets.

GCP did not respond to a request for comment.

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