Los Angeles Water and Power Employees Retirement Plan has made a $75m (€69.3m) commitment to Locust Point Capital’s US real estate credit fund.
The pension fund disclosed in a board meeting document that it has allocated $65m from its Retirement Fund and $10m from its Retiree Health Benefits Fund to the Locust Point Private Credit Fund III.
According to a SEC filing, Locust Point Capital had received $536.3m in capital commitments for the fund as of the end of January this year.
The real estate credit fund, which targets 12-14% net internal rates of return, will invest in lower middle-market value-add assets, providing senior and subordinated debt, and preferred equity.
The fund’s transactions range from $2m to $10m, focusing on senior housing and care as it targets secondary and tertiary US markets. Locust Point Capital did not respond to a request for comment.
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