The Los Angeles Fire & Police Pensions board has canceled its search for a leveraged loan manager, Ray Siranna, general manager of the $ 31.4 billion retirement fund, said in an email.
On August 19, the board of directors approved a recommendation by the staff and its chief investment advisor, RVC, to discontinue the search due to lower spreads on bank loans compared to Treasury bonds than when the RFP was approved in January, which lowered the expected yield, according to the RVC memorandums the board at its meetings on 5 and 19 August. The mandate would be funded as part of a new allocation of 2% of the pension plan to a private loan.
In addition, according to Mr. Chiranna, the board has increased the cap on private equity commitments for any existing or new private equity capital funds to $ 100 million from $ 80 million. The maximum amount is reserved for managers who have shown exceptional results, according to a note from the pension fund’s private investment portfolio Portfolio Advisors. The Board of Directors maintained a maximum private equity commitment of $ 30 million for any existing or new venture capital or capital growth funds and no more than $ 20 million for any dedicated fund manager.
Portfolio Advisors is expected to invest between $ 1 billion and $ 1.2 billion in private investments on behalf of the pension fund by the end of 2021.