Los Angeles City Employees’ Retirement System (LACERS) has made its first-ever private credit real estate commitment by making a $25m (€22.1m) commitment to a US opportunistic fund managed by Mavik Capital Management.
LACERS disclosed in a board meeting document that it has placed the capital into the Mavik Real Estate Special Opportunities VS2 fund, as part of the pension fund’s 2025 plan for its private credit programme, which is seeking total commitments of up to $700m.
Mavik Capital wants to raise $515m for the fund, according to the pension fund’s private credit consultant Aksia.
The fund will target stressed, distressed and special situation real estate investments within the US middle market, focusing on opportunities ranging from $10m to $50m.
The $23bn pension fund’s long-term plan is to allocate 20-40% of the private credit asset class to core real estate and real asset credit investments.
LACERS has set an overall allocation of 5.75% of its total plan assets for private credit. The programme aims for a net return in the 8% to 10% range, benchmarked against the Credit Suisse Leveraged Loan Index plus 200bps.
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