The $15 billion Los Angeles Fire and Police Pension system has issued a request for proposals for private equity investment advisors.
LAFPP, which allocates10% of its portfolio to private equity, is looking for advisors to build upon the existing portfolio of traditional private equity investments, and “to assist in the construction of a non-traditional, specialized portfolio of investments with strategies that are frequently overlooked by traditional investors, but that have the potential to deliver competitive, risk-adjusted rates of return,” according to LAFPP.
Specialized investments may include a focus on specific industries, geographic areas, demographic trends, or may target smaller or emerging partnerships. The traditional program will constitute 85% to 95% of total annual private equity commitments, while the specialized program will constitute 5% to 15% of annual commitments.
LAFPP plans to hire no more than two advisors to manage the traditional portfolio, and one advisor to handle specialized investments. The traditional program will be structured to provide a limited amount of discretion for the advisor(s) hired and the specialized program will be operated on a non-discretionary basis.
The system’s private equity program began in 1996 and to date the program has committed approximately $1.1 billion to 154 separate partnerships managed by 79 private equity shops. The program’s investments are diversified across traditional venture, buyout and special situations funds by vintage year, sector and industry.
The deadline for the RFP is Thursday, April 12. Calls for further information may be directed to Tom Lopez or Rick Rogers at (213) 978-4464.