LACERS commits $40m to Cerberus Capital Management fund

The institution has an appetite for corporate debt funds in North America.

Institution: Los Angeles City Employees’ Retirement System
Headquarters: Los Angeles, United States
AUM: $17.68 billion
Allocation to alternatives: 21.41%

Los Angeles City Employees’ Retirement System has committed $40 million to Cerberus Institutional Real Estate Partners V, a diversified distressed debt real estate fund that invests in Western Europe and North America, according to a September 2020 meeting agenda.

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Other highlights from LACERS’ September 2020 investment committee meeting:

  • LACERS’ investment with the Cerberus Capital Management fund supports its strategy to “optimise long-term risk-adjusted investment returns”.
  • The $19.53 billion pension’s private debt asset class makes up 5.7 percent of the system’s investment portfolio.
  • The five-year annualised return for opportunistic credit is 4.1 percent.
  • LACERS is moving forward with its search for an emerging market debt investment manager and has narrowed down finalists that will be presented to the full board for approval, according to the agenda.

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Rodney June serves as LACERS’ chief investment officer. This is his second time at the pension, following a decade-long stint as an investment officer from 1998 to 2008. During his time away, June was the CIO of the State of Hawaii Employees’ Retirement System.

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