Los Angeles County Employees Retirement Association (LACERA) is planning to extend its real assets investment strategy to include co-investments and secondary-market investments to broaden its access to opportunities.
The pension fund – which created a 3% allocation to the infrastructure asset class in the latter part of 2018 and made its debut infrastructure investment a year after – has so far made five commitments to infrastructure funds.
Currently, the pension fund’s real assets portfolio only holds infrastructure commitments.
LACERA said in a meeting document that broadening of its investment strategy could help the $59bn (€48.5bn) pension fund target specific asset types that are less readily available in public markets or more difficult to implement in private markets.
LACERA intends to invest around $50m each into co-investments and secondary strategies. Over the next three years, the plan is to deploy $250m in total.
LACERA also plans to add private natural resources to its real assets portfolio. The pension fund expects to make this recommendation to its investment board within the next few months.
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