LA WPERP commits to latest real estate funds

Name: Los Angeles Water & Power Employees Retirement Plan
Headquarters: Los Angeles, US
AUM: $15.47 billion
Allocation to alternatives: 8.88%

Los Angeles Water & Power Employees Retirement Plan (LA WPERP) has committed $150 million across two real estate funds, one managed by DRA Advisors and another by Invesco Real Estate.

LA WPERP announced at its January board meeting that it will invest $75 million each into DRA Growth and Income Fund XI and Invesco US Income Fund – open-ended.

The Invesco US Income Fund – open-ended, launched in 2013, aims to invest in core-plus assets in the North American region, along with diversified sectors. The pension plan had previously invested in Invesco Core Real Estate – USA.

LA WPERP allocates 8.88 percent of its total investment portfolio to real estate, totaling $1.37 billion in capital. The pension’s target allocation to the asset class is 8.0 percent. Its real estate commitments have tended to focus on value-add and core vehicles that have a diverse investment sector across the US.

As of September 30, 2022, the prior investments made by the pension with DRA Advisors comprised around 5.4 percent of the portfolio of real estate. The plan’s overall investment with DRA Advisors is currently at about 7.9 percent of the portfolio, with the additional $75 million commitment to DRA Growth and Income Fund XI.

As of September 30, 2022, the prior investment by the public pension into Invesco Real Estate was at almost 3.5 percent of the real estate assets. The plan’s overall investment in Invesco Real Estate currently is approximately 6.1 percent of the portfolio after the additional $75 million commitment to Invesco US Income Fund – open-ended.

Prior capital investments by DRA Advisors in the plan:

DRA Growth and Income Fund VII
DRA Growth and Income Fund VIII
DRA Growth and Income Fund IX

DRA Advisors’ DRA Growth and Income Fund XI is a value-add fund aiming to raise $2.2 billion across the North American region.

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