Los Angeles Water and Power Employees’ Retirement Plan (WPERP) has rehired real estate investment consultant StepStone for a new five-year contract and made a $75m (€67.4m) commitment to Angelo Gordon’s latest European value-add real estate fund.

The pension fund said in a meeting document that the commitment to the AG Europe Realty Fund III was made via a $60m contribution from the Retirement Fund for Los Angeles Water and Power and a $15m commitment from the Retiree Health Benefits Fund.

The AG Europe Realty Fund III fund, which is seeking a $1.2bn fundraise, had a $680m second close in November last, according to sources.

The fund, which invests in Western European sub-performing distressed debt, office, retail, hotel, industrial and residential assets, is expected to target net internal rate of returns in the range of 18% to 20%.

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