RFP: Real Assets Emerging Manager Program Discretionary Separate Account Manager

The Los Angeles County Employees Retirement Association ("LACERA") is requesting proposals from qualified firms interested in providing discretionary separate account management services to implement the Real Assets Emerging Manager Program (the "Program") covering Real Estate and Real Assets. The Program definition of “emerging manager” is in general funds I, II, or III or with less than $1 billion in fund size. The specific services requested via this Request for Proposal (“RFP”) are contained in the section below, Scope of Services.

Scope of Services

LACERA seeks a single manager for a Real Estate and Real Assets emerging manager program, or two distinct managers for Real Estate and Real Assets. The mandate is to lead a separate account in a manager-of-managers structure to invest in funds led by emerging managers. Selected manager(s) will provide LACERA with the following scope of services:

Identify and Select High‐Quality Emerging Managers

Conduct independent evaluations of investment opportunities and provide detailed written recommendations, including results of investment and operational due diligence
Seek successful emerging manager program graduation candidates for future investment by LACERA

Investment Monitoring

Monitor and report on investments in collaboration with LACERA’s custodian bank, as well as meet all reporting requirements under California and other applicable laws
Assess the general partner’s commitment to diversity, equity, and inclusion (“DEI”) and provide DEI metrics
Evaluate the general partner’s environmental, social, and governance (“ESG”) policy and provide ESG metrics

Collaboration with LACERA

Provide educational workshops and periodic Separate Account updates
Collaborate with staff in investment diligence opportunities and future initiatives
Facilitate LACERA’s direct access and maximum allocation to co‐investment and secondary opportunities offered by general partners in the emerging manager program

Favorable Terms

Make best efforts to obtain an advisory board seat for LACERA in each fund contained in the Program
Negotiate favorable terms in current funds, and position LACERA for favorable terms in future funds including items such as management fees, carry rates including preferred rate and catchup structure, capacity rights, and potential revenue share

The investment performance objective for this Program, as measured by Internal Rate of Return, is an annualized return of respective benchmarks for each asset category over a 10-year time frame. This objective is net of all partnership fees, expenses and carried interest, as well as any manager fees, expenses, and carried interest. The performance objective is consistent with the Fund’s asset category return expectations.

Firms are invited to submit proposals for Real Assets and/or Real Estate manager discretionary separate account management services described above.

Submission Requirements

Submit your Intent to Respond (Attachment A) by 3:00 PM Wednesday, April 10, 2024, as well as your completed proposal by e-mail by 3:00 PM Friday, May 3, 2024. Any proposal delivered after the proposal deadline will not be considered. Faxed transmissions are not acceptable. The completed proposal is to be sent to the attention of:

Ms. Cindy Rivera, LACERA Investments
ra.emp.rfp@lacera.com

Also send one electronic copy marked “REDACTED”. The redacted copy should exclude all material from your proposal that you believe in good faith is exempt from disclosure under the California Public Records Act (Cal. Gov. Code §7920.000 et seq.) (described in Section VI of this RFP). Redactions should appear as blacked out material or blank page(s) with the word “REDACTED” or “PROPRIETARY” inserted.

Questions Relating to This RFP

Direct all questions, inquiries, and requests for additional information concerning this RFP to Cindy Rivera no later than 3:00 PM April 12, 2024 by e-mail (ra.emp.rfp@lacera.com). All questions received and responses thereto will be posted on LACERA’s website (www.lacera.com) under the “About LACERA”, “Who We Are”, "Business Opportunities" section on or about 3:00 PM April 18, 2024.

Tentative Timetable

The following is a tentative schedule for this search. The interview, evaluation, and staff recommendation phases are subject to modification by LACERA.

Issuance of RFP: March 29, 2024
Submission – Letter of Intent to Respond (Attachment A) Deadline: April 10, 2024 (firm)
Submission – RFP Questions Deadline: April 12, 2024 (firm)
LACERA Response to Written Questions: April 18, 2024
Submission – RFP (including Attachments B-E) Response Deadline: May 3, 2024
Invitations to Advance and Interview, as Warranted: 2Q -3Q 2024
Deliberation/Selection: 4Q 2024