Commitment to Specialized Manager Private Equity Program
Los Angles Fire and Police Pensions (LAFPP) reports a strong internal rate of return of 11.2% for its Specialized Manager Program through June 30, 2020. The semi-annual review of LAFPP’s Specialized Private Equity Program was presented to the Board of Fire and Police Pension Commissioners on February 18, 2021 and highlighted the success of the Program since its inception.
LAFPP’s Private Equity Portfolio is comprised of the Core and Specialized Manager Programs. The Specialized Private Equity portfolio was established in 1996 and includes first-, second-, and third-time funds that range in size from approximately $100 million to $500 million. Through this program, LAFPP has made commitments to Specialized private equity emerging managers that have included firms with minority-, women- and Lesbian, Gay, Bisexual, Transgender and Queer- (LGBTQ+) ownership. Additionally, LAFPP has made fund commitments to emerging managers that are based in the City of Los Angeles or California, or targeted investments in economically disadvantaged markets. Since inception, the Specialized Manager Program has generated a net Internal Rate of Return (IRR) of 11.2% and a 1.57x net return multiple.
The Specialized Manager Program has achieved results similar to the Core Portfolio, which had a net IRR since inception of 11.5% and a 1.61x net return multiple. Currently, both Portfolio Advisors and Fairview Capital manage the Specialized Private Equity portfolio for LAFPP.
Both the Specialized Manager Program and the Core Portfolio have performed well and are fulfilling the role they play in LAFPP’s asset allocation plan. Brian Pendleton, President of the Board commented, “The effort and the little extra risk to invest in these specialized managers have given us incredible returns!”
Together, Fairview and Portfolio Advisors have reviewed over a thousand funds since the start of the program, with the focus on selecting high quality investments. So far, the Board has approved 81 funds as part of the Specialized Manager Program.
For more information on the LAFPP Private Equity Specialized Manager Program, please visit www.lafpp.com/private-equity-specialized-manager-program.
LAFPP oversees the pension fund for sworn members of City of Los Angeles Fire, Police, Airport and Port departments. The fund is currently valued at over $28 billion in assets and serves over 27,000 members and beneficiaries.