Los Angeles County Employees Retirement Association (LACERA) has approved a $50m (€42.6m) commitment to Partners Group for real estate co-investment capital, according to the pension fund’s board meeting summary.
The allocation is part of a plan established last year, which created a 20% target for co-investments and secondaries within the pension fund’s total real estate portfolio.
As of the third quarter of 2024, the real estate portfolio was composed of 53% funds and 47% separate accounts. At that time, the $88bn pension fund held no exposure to co-investments or secondaries.
As part of the new plan, LACERA has restructured its real estate programme to include the new 20% allocation to with co-investments and secondaries, while targeting 70% in funds and 10% for its emerging manager programme.
LACERA will target co-investments in both private core and non-core real estate sectors. This capital will be allocated in partnership with the pension fund’s discretionary managers and consultants, or through the specific managers those partners have already approved.
LACERA has set a 40% limit on its combined ownership of co-investment assets.
In the current year, the pension fund expects an $800m pacing plan for core real estate and a $600m pacing for non-core assets.
Core commitments are expected to range from $100m to $600m and can be allocated to projects within the US or in global markets.
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