LACERS backs Cerberus Capital Management fund

The system's latest investment aligns with its strategy to enhance long-term risk adjusted investment returns.

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Institution: Los Angeles City Employees’ Retirement System
Headquarters: Los Angeles, United States
AUM: $17.68 billion
Allocation to alternatives: 21.41%

Los Angeles City Employees’ Retirement System has committed $40 million to Cerberus Institutional Real Estate Partners V, which invests in a diverse group of industries in North America and Europe, according to a September 2020 meeting agenda.

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Other highlights from LACERS’ September 2020 investment committee meeting:

  • LACERS’ investment with the Cerberus Capital Management fund supports its strategy to “optimize long-term risk-adjusted investment returns.”
  • The pension’s real estate asset class sits at 4.46 percent on a 7 percent target.
  • The real estate asset class has achieved an annualized return of 9.28 percent net of fees over the last 10 years (and a 5.92 percent annualized return since inception).
  • In the institution’s real assets portfolio, which includes private real estate and public real assets, real estate makes up 39.33 percent.

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Rodney June serves as LACERS’ chief investment officer. This is his second time at the pension, following a decade long stint as an investment officer from 1998 to 2008. During his time away, June was the CIO of the State of Hawaii Employees’ Retirement System.

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