unquote" LP round-up

• The University of California has approved an increase in its General Endowment Pool strategic allocation to private equity from 11.5% to 22.5% at a recent meeting of its investments sub-committee. This represents an increase of $1bn, based on the Endowment's last reported AUM figure of $9.1bn, as of 30 June 2016. This dramatic increase follows an update of the Retirement Plan's Investment Policy Statement in May 2016, which saw the target allocation to private equity increase from 8% to 10%, and the allowable range changed from 4.75-10.75% to 5-15%. This policy revision in 2016 also saw the ceiling for direct and co-investments doubled from a $100m maximum to $200m.
  
  
• Los Angeles County Employees Retirement Association (Lacera) is currently requesting proposals for discretionary separate account management services as part of its emerging manager private equity programme. The pension fund will appoint one or more managers to invest up to $100m per year in GPs running first, second or third institutional funds with total commitments of up to $750m for buyout funds, and up to $300m for venture funds. The programme was established in 2008 with JP Morgan managing a $150m allocation on a discretionary basis. Two additional commitments of $100m were made in 2013 and 2016 to keep the programme funded in advance of the current search. The programme aims to direct capital towards managers that are traditionally overlooked by large institutional investors, to gain early access to top-performers with a view to establishing long-term relationships, and to invest in funds with favourable economic and governance-related terms. A key performance indicator of the programme is the number of emerging managers graduating into Lacera's core private equity portfolio investments, and the investment performance objective for the programme is the Russell 3000 index over a 10-year time frame plus 300-500 basis points.
  
  
• Texas Municipal Retirement System, in conjunction with private equity consultant StepStone Group, is currently in the process of conducting a search for new private equity managers, with the intention of allocating $600m over the course of 2017. In February, StepStone recommended commitments totalling $125m to three funds: Marlin Equity V, Marlin Heritage II and One Rock Capital Partners II. The search process is focused on enhancing manager diversification, particularly within the pension fund's buyout portfolio, and also opportunistically, adding to its growth and credit portfolios. Additional fund recommendations are due to be made in May/June, with a further $475m to be committed this year.

LP news in brief:

• ASR Nederland will be making additional commitments to private equity over the course of the next 12 months. Prospective fund managers may contact the company directly with the fund proposals.
  
  
• Norwegian insurance company Gjensidige Forsikring has invested in funds managed by Procuritas, Erhvervsinvest, Verdane Capital and Northzone in the past 12 months. The insurer has a current allocation of 2% to private equity, and seeks primary fund and secondary investments across Europe, especially in the Nordic region. Private equity has delivered the insurer a 10% net IRR since inception.
  
  
• Pensioenfonds PNO Media has plans to make four new commitments to private equity over the course of the next 12 months.
  
  
• South Yorkshire Pensions Authority will make additional commitments of around £100m to private equity over the course of the next 12 months.

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• Topics
• LPs
• LP interest secondary
• Erhvervsinvest