LA pension backs latest Loan Star fund

Sofia Karadima
15 November 2018

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Los Angeles Fire and Police Pension System (LAFPP), a $23bn pension fund, has approved commitments of up to $40m to Lone Star Fund XI, according to a monthly report.

Lone Star Fund XI, which has a $6bn target, held a first close on $2.9bn in October 2018.

Other LPs backing Lone Star Fund XI include Teacher Retirement System of Texas, Teachers' Retirement System of Louisiana, Policemen's Annuity and Benefit Fund of Chicago, and New Mexico Educational Retirement Board.

These pension funds have also committed to Lone Star Fund XI's predecessor, which held its final closing in November 2016 with approximately $5.6bn in capital commitments. Lone Star Fund X's target investments included single-family residential debt, corporate and consumer debt products, and investments in financially orientated and other operating companies. The fund's geographic preferences are Europe, North America, Latin America and Asia Pacific.

Lone Star Fund XI falls under LAFPP's private equity portfolio. The pension fund has 9.3% invested in private equity, versus a target allocation of 12%. It has also recently committed to Platinum Equity Small Cap Fund I, TCV X, and Vista Equity Partners Fund VII.