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Sign in Sign up for a FREE subscriptionLACERS gets additional $975m in commitment capacity to reach real estate allocation goals by 2023
The $17.7 billion Los Angeles City Employees’ Retirement System has the capacity to commit an additional $725 million to $975 million between now and 2023 in order to increase its real estate allocation to 7 percent of the total plan assets (targeting $145 million to $195 million per year over the next five years), according to board meeting documents.
The Townsend Group, LACERS’ real estate consultant, ran three scenarios to model real estate capital pacing between 2019 and 2023. All three scenarios assume a total plan growth rate of 4 percent per annum.
The range of capital shortfalls between 2019 and 2023 under the three different scenarios include:
Portfolio Growth Scenario Core Growth Assumption Noncore Growth Assumption Total Capital Needed until 2023
