The LA Metropolis Workers’ Retirement System (LACERS) has made two new funding allocations in the direction of non-public credit score funds, amounting to $200m (£154.28m).
In keeping with notes from the newest LACERS board of administration assembly, the board voted in favour of committing as much as $100m within the AG Direct Lending Fund V, which is managed by TPG Twin Brook.
The board additionally agreed to allocate as much as $100m into the HPS Specialty Mortgage Fund VI which is managed by HPS Funding Companions. Earlier this 12 months, HPS confirmed that greater than $21bn had been raised for this fund.
Learn extra: HPS Funding Companions mulls IPO
Each allocations signify the primary time that LACERS has opted to put money into both fund.
The investments have been made as a part of LACERS’ Personal Credit score Program 2024 Strategic Plan, which was adopted by the board on 27 February 2024. The plan was laid out by Aksia, and recommends $500m to $700m in commitments to personal credit score for 2024.
The technique is meant to assist the board to construct a diversified non-public credit score and whole fund portfolio which optimises long-term threat adjusted funding returns and promotes good governance practices.
Learn extra: HPS speaking to BlackRock about attainable sale
TPG has an current relationship with LACERS, which beforehand dedicated to seven non-public fairness funds and one actual property fund managed by the GP. In assembly notes, the board described the TPG fund as having a “robust observe file since 2015, producing levered internet returns of ~10-12 per cent throughout 4 vintages whereas investing at conservative (< 4.5x) entry leverage ranges.”
HPS is a brand new common associate relationship for LACERS.
LACERS has roughly $23bn in belongings below administration. It has a 16 per cent goal allocation to personal fairness and a 12 per cent goal allocation to actual belongings.
Learn extra: TPG’s Angelo Gordon acquisition helps enhance credit score AUM by 10pc in Q2