The Los Angeles Fire & Police Pensions board has called off the search for a leveraged bank loan manager, said Ray Ciranna, chief executive of the $ 31.4 billion pension fund, in an e -mail.
The board approved on August 19 the recommendation of staff and its general investment consultant, RVK, to halt research due to lower spreads on bank loans against Treasury bonds against l approval of the RFP in January, reducing expected returns, according to RVK’s memos to the board for its August 5 and 19 meetings. The mandate would have been funded under the new 2% allocation from the private credit pension scheme.
Separately, the board has increased its maximum private equity commitment size for any existing or new core private equity funds to $ 100 million, from $ 80 million, Ciranna said. The maximum amount is reserved for managers who have posted exceptional results, says a note from the pension fund’s private equity consultant, Portfolio Advisors. The Board of Directors has maintained its maximum private equity commitment amount of $ 30 million for any existing or new venture capital or growth capital fund and a maximum of $ 20 million for any management fund. specialized.
Portfolio Advisors expects to have committed between $ 1 billion and $ 1.2 billion in private equity on behalf of the pension fund by the end of 2021.