Los Angeles Water and Power Employees’ Retirement Plan has agreed to become a limited partner in the EQT Exeter Europe Logistics Value Fund V with a $75m (€63.9m) commitment, according to a board meeting document.
The Retirement Fund of Los Angeles Water and Power is providing $65m of the capital and the Retiree Health Benefits Fund is providing $10m.
Los Angeles Water and Power said it expected the fund to invest in non-core industrial assets in the UK and key e-commerce markets across Europe. The types of assets targeted will be ‘big box’, ‘mid box’, and last-mile logistics warehouses.
EQT Exeter is seeking to raise €2.5bn for the fund and has attracted a number of US public pension funds, including Orange County Employees Retirement System.
According to Los Angeles Water and Power, the fund is targeting a net internal rate of return of 14% to 16%, using up to 65% of financial leverage.
Los Angeles Water and Power also approved a $75m commitment to Starwood Distressed Opportunity Fund XIII.
Starwood is seeking $10bn in commitments, with a potential closing of the fund sometime during the first quarter of next year.
It will consider a combination of housing, data centres, hotels, life-science and traditional office buildings in the US and Europe.
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