Los Angeles Water and Power Employees Retirement Plan has set a $500m (€429.9m) real pacing plan for 2026, according to a recommendation from the pension fund’s investment consultant StepStone.
Los Angeles Water and Power Employees Retirement Plan is expected to allocate between $200m and $400m of this year’s pacing capital to core/core-plus strategies and up to $250m to non-core real estate.
The majority of this capital will be invested through real estate funds. Los Angeles Water and Power is expected to consider other investment structures like co-investments, secondaries and recapitalisations.
Los Angeles Water and Power’s core investment strategy is expected to focus on identifying mandates that complement the pension fund’s existing portfolio. The pension fund’s non-core strategy is expected to capitalise on current market volatility, specifically targeting acquisition opportunities arising from stressed borrowers and asset resets.
The pension fund is currently underweight in retail real estate, which accounts for just 5.3% of its real estate holdings compared to the NCREIF benchmark of 12.8%.
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