The Los Angeles County Employees Retirement Association (LACERA) has approved a real assets structure review that will see a continued increase in allocation toward private real assets.
The structure review includes an understanding that in the next three to five years, investments in private infrastructure and natural resources assets through funds, co-investment vehicles and secondary purchases will largely replace the existing public market equities and commodities portfolios that LACERA currently holds in its infrastructure and natural resources categories.
In its structure review, LACERA noted that varying opportunities exist in the real assets sector currently, including in infrastructure-adjacent strategies (also called opportunistic infrastructure), in mining royalties and streams, in digital infrastructure specialists, in midmarket infrastructure and in energy transition strategies.
Currently, 5.4 percent of LACERA’s portfolio is allocated toward core
