Los Angeles County Employees Retirement Association
300 North Lake Avenue
Suite 850
Pasadena, CA 91101
CONSULTANT SEARCH FOR
HEDGE FUNDS, CREDIT AND REAL ASSETS
December 29, 2023
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TABLE OF CONTENTS
I. Background Information ..................................................................................................... 4
II. Scope of Work..................................................................................................................... 5
A. Description of Consulting Services Sought ................................................................. 5
B. Common Components of Scope of Work and Deliverables ........................................ 5
III. Requirements and Instructions for RFP Response .............................................................. 7
A. Proposal Deadline ........................................................................................................ 7
B. Format and Content...................................................................................................... 8
C. Questions Relating to this RFP .................................................................................. 10
D. Evaluation of Responses and Additional Conditions................................................. 10
IV. Evaluation Process ............................................................................................................ 11
V. Contract Terms and Conditions......................................................................................... 11
VI. Tentative Timetable........................................................................................................... 12
VII. Notice to Respondents Regarding the Public Records Act ............................................... 12
VIII. Responses become LACERA Property ............................................................................. 13
IX. Contract Negotiations ........................................................................................................ 13
X. Contract Terms and Conditions......................................................................................... 14
XI. Reservations by LACERA ................................................................................................ 14
RFP ATTACHMENTS
A – Intent to Respond
A1
B – LACERA Investment Policy Statement
B1
C – Minimum Qualification Certification
C1
D – Questionnaire
D1
E – Supplemental Questionnaire (Microsoft Excel file)
E1
F – Supplemental Diversity, Equity, and Inclusion Questionnaire
F1
F – Supplemental Diversity, Equity, and Inclusion Table
F2
G – Investment Consulting Services Agreement
G1
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Request for Proposal - Non-Discretionary Hedge Funds, Credit,
and Real Assets Consulting Services - 2023
December 27, 2023
Dear Potential Provider:
The Los Angeles County Employees Retirement Association ("LACERA") is requesting
proposals from qualified firms interested in providing non-discretionary advisory/consulting
services for hedge funds, credit, and real assets (excluding real estate and TIPS) investments. The
specific services requested via this Request for Proposal (“RFP”) are contained in Section II,
Scope of Work.
If you are interested in responding, please submit your Intent to Respond (Attachment A) by
3:00 PM, PST, Friday, January 29, 2024, as well as your completed proposal (electronic copy
via email) by 3:00 PM, PST, Friday, February 9, 2024, to:
Mr. Quoc Nguyen
Investment Officer
LACERA
300 North Lake Avenue, Suite 850
Pasadena, CA 91101
Consultantsearch@lacera.com
Detailed instructions for proposal submission are included in Section III of this RFP. Questions
concerning the RFP must be submitted in writing by 3:00 PM, PST, Friday, January 19, 2024.
Thank you for your interest in providing hedge funds, credit, and/or real assets consulting services
to LACERA, and we look forward to your response.
Sincerely,
Mr. Quoc Nguyen
Investment Officer
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Request for Proposal - Non-Discretionary Hedge Funds, Credit,
and Real Assets Consulting Services - 2023
I. Background Information
LACERA is a public pension fund established pursuant to the County Employees Retirement
Law of 1937. In addition to providing service to its members, LACERA acts as fiduciary for
the investment and management of its portfolio.
LACERA is governed by two nine-member Boards: the Board of Retirement (“BOR”) and
the Board of Investments (“BOI”). The BOR is responsible for the administration of the
retirement system. The BOI, to which the Hedge Funds, Credit, and Real Assets Consultant(s)
reports, is responsible for establishing LACERA's investment policy and objectives, strategic
asset allocation, as well as exercising authority and control over the investment management
of the fund. The day-to-day management of LACERA is delegated to a Chief Executive
Officer appointed by both Boards. Investment selection authority and other investment
management responsibilities are delegated to the Chief Investment Officer (“CIO”) by the
BOI subject to the investment policy statement, asset class structure reviews, and other
policies and guidelines facilitating the BOI's oversight of the CIO's delegated authority.
LACERA roles and responsibilities for implementation of its investment program can be
found in Section IV of LACERA’s Investment Policy Statement.
LACERA administers a pension fund of approximately $72 billion in assets. LACERA’s
current long-range asset allocation plan has set an allocation to hedge funds of 6%, to credit
of 11%, and to real assets (minus real estate and TIPS) of 8% of total assets. As of September
30, 2023, LACERA's hedge funds, credit, and real assets (minus real estate and TIPS)
portfolios were valued at $4.7 billion, $8.4 billion, and $6.1 billion, respectively, and
represented 6.5%, 11.6%, and 8.5% of total assets, respectively. Each asset category portfolio
is detailed in our quarterly performance report as of September 30, 2023, which is posted on
the LACERA website, Total Fund Performance Report: Q3 2023. For additional information
about LACERA, please refer to LACERA's Annual Comprehensive Financial Report
("ACFR"), which is posted on the LACERA website, Annual Reports | LACERA.
The consulting services requested in this RFP for hedge funds, credit, and real assets (minus
real estate and TIPS) are currently provided by Albourne Group (“Albourne”) and Meketa,
which also serves as LACERA’s general consultant. Albourne serves as LACERA’s
consultant for hedge funds, illiquid credit, and private markets real assets minus real estate
and TIPS. Meketa serves as LACERA’s consultant for liquid credit and public market real
assets. As part of the scope of work for this RFP, LACERA will transition the responsibilities
of liquid credit and public markets real assets for infrastructure, natural resources, and
commodities coverage from the general consultant to the selected credit consultant and real
assets consultant, respectively. Existing service providers are permitted to submit a response
to this RFP. The outcome of this search can result in one consultant or multiple consultants
selected for one, two, or three mandates (hedge funds, credit, real assets).
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Request for Proposal - Non-Discretionary Hedge Funds, Credit,
and Real Assets Consulting Services - 2023
II. Scope of Work
A. Description of Consulting Services Sought
The purpose of this RFP is to select one or more consultants to provide consulting services
for investments by LACERA in hedge funds, credit, and real assets, by making such
investments through limited partnerships, dedicated managed accounts, separate accounts, funds
of one, co-investments, commingled vehicles and other investment structures.
LACERA will consider proposals for one or more of the following three service categories:
(1) a hedge funds investment consultant, (2) a credit investment consultant, or (3) a real
assets investment consultant. The proposal must demonstrate that the consultant is capable
of providing advice and recommendations for the service category(ies) proposed. Proposals
must identify the scope of services offered under appropriate descriptive headings and
specify any asset categories, strategies, or vehicles excluded from the services offered.
Firms are invited to submit proposals for one, two, or all three of the investment
consulting services described above. However, the proposal must clearly identify the
mandate(s) in which the firm is responding to in the Letter of Intent and Executive Summary
documents of the submission.
B. Common Components of Scope of Work and Deliverables
Your proposal must address each of the components listed below. LACERA will consider
additional components of work explained in the proposal that a respondent believes to be
necessary or advantageous to LACERA.
1. Strategic Consulting
o Provide recurring recommendations for policy, objectives and strategy that are
consistent with the Investment Policy Statement and respective asset category’s
structure review guidelines.
o Provide the Board of Investments with independent assessment of staff’s
implementation of Board approved policies and guidelines that relate to hedge
funds, credit, and real assets investments.
o Provide attribution analysis and quarterly reports on the hedge funds, credit, and
real assets portfolios.
o Conduct comprehensive written research, analysis, and advice on specific
investments and operational topics and issues.
2. Sourcing and Due Diligence
o Conduct independent evaluations and provide concurrence memos on hedge
funds, credit, and real assets investments.
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