LA Water & Power: $200M Real Estate & Credit Investment
LA Water & power Employees Retirement Plan aggressively deploys $200 million in a strategic pivot towards private markets. This bold move focuses on high-growth opportunities within fintech and value-add senior housing, showing a clear commitment to long-term returns. The allocation includes meaningful investments in real estate and private credit funds, designed to diversify the pension fund’s portfolio and bolster its financial standing. News Directory 3 reports on LAWPERP exceeding its private equity target as it navigates strategic shifts. Discover what’s next for this major investment initiative.
LA Water & Power Pension invests $200M in Private Markets
Updated May 29, 2025
The Los Angeles Water & Power Employees Retirement Plan (LAWPERP) is expanding its investment portfolio with a $200 million commitment to private markets. The pension fund, which manages $19 billion in assets, is targeting both private equity and real estate through three separate fund allocations.
A $50 million commitment will go to the Harrison Street Core Property Fund, including $10 million from the retiree health fund. This open-end real estate fund focuses on core properties such as student housing, senior housing, medical offices, self-storage facilities, and data centers. This marks LAWPERP’s second investment with Harrison Street, following a previous $60 million commitment in 2015.
Additionally, LAWPERP has allocated $75 million to Locust Point Private Credit Fund III, with $10 million sourced from the retiree health fund. This closed-end real estate debt fund specializes in value-add opportunities within the middle-market segment of U.S. senior housing and senior care operating companies. This investment aims to capitalize on the growing demand for senior care facilities and services.
The final piece of the $200 million commitment is a $75 million investment in FTV Capital’s FTV III, including $10 million from the retiree healthcare fund. this growth equity fund targets high-growth fintech companies that are either at or near profitability. The investment aligns with LAWPERP’s strategy to diversify its portfolio with innovative and rapidly expanding companies.
LAWPERP’s current private equity allocation is 14% of its total assets,totaling $2.6 billion,which exceeds its 10% target. The real estate allocation stands at 9.3%, slightly below the 10% target set by the trustees at the beginning of the year. These strategic investments reflect LAWPERP’s ongoing efforts to optimize its asset allocation and achieve its long-term investment goals.
What’s next
LAWPERP will continue to monitor its private equity and real estate investments,adjusting its strategy as needed to meet its target allocations and generate strong returns for its beneficiaries. Further investments in private credit and growth equity are anticipated.