Los Angeles City Employees’ Retirement System (LACERS) has set a real estate pacing target of up to $450m (€415.9m) for its fiscal 2025 year, starting in July, according to a document from the pension fund’s board meeting.
The $23bn pension fund’s investment consultant Townsend disclosed in the meeting document that the plan is to target core real estate opportunities in fiscal 2025, with up to $200m allocated for commitments to two to three core or core-plus funds.
The pension fund’s core or core-plus real estate investments could be made through secondary market purchases, new blind pool fund commitments and investments with specialists in alternative and niche sectors.
Part of the core strategy may also include rebalancing the core portfolio to focus on boosting returns and to continue to evaluate current core open-ended positions to deliver appropriate core portfolio objectives.
In the current fiscal 2024 year, which ends on 30 June, LACERS has so far committed $215m solely to non-core real estate funds.
LACERS expects to allocate up to $250m to non-core investments in fiscal 2025, targeting complementary exposures, thematic strategies and specialist managers in alternative sectors with growth potential. The capital will likely be divided across five or six commitments.
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