The Los Angeles Fire and Police Pensions (LAFPP) private credit program is a relatively new program that began in June 2023 when StepStone Group (StepStone) was hired as LAFPP’s private credit consultant.  The Private Credit Emerging Manager Program reflects LAFPP’s commitment to broadening participation in its investment program while maintaining strong fiduciary standards in order to optimize risk-adjusted portfolio returns.  LAFPP invests in commingled funds sponsored by private credit managers and is in the process of building a diversified portfolio of private credit strategies that includes: direct lending funds, specialty/asset-based finance funds, special situations/opportunities funds, real assets debt (including real estate and infrastructure) funds, and distressed debt funds.   

The Private Credit Emerging Manager Program qualifies a firm as an emerging manager based on the following criteria:

• First-, second-, or third-time institutional funds that are new to the program, (the Plan has not previously committed with the strategy) and,

• Funds with a stated target size of approximately $750 million or less, and that may have:

• Funds with managers that include one or more minorities, women, LGBTQ (Lesbian, Gay, Bisexual, Transgender and Queer), persons with disabilities, and/or US Military veterans at the General Partner level, and/or

• Funds that serve or invest in underserved communities, and/or

• Funds that invest in companies located in Los Angeles or California.

For commitments to second- or third-time institutional funds with existing managers in the program (follow-on fund commitments or ‘re-ups’), the stated target size of the fund shall be $1.5 billion or less.

LAFPP works closely with our private credit consultant, StepStone, to review and underwrite potential funds for consideration by the Board of Commissioners, which has sole authority to approve commitments.

All investment management firms interested in contracting with LAFPP must abide by the applicable City of Los Angeles and LAFPP Board policies, laws, and regulations, including the ones highlighted in the Contracting Requirements Section of the website.

If you have any questions, please contact Investments Staff by phone at (213) 279-3020 or by email at [email protected].  Due to contracting restrictions as described in the ordinance and policies below, we encourage contact with Investments Staff rather than LAFPP’s Board members, as contacting individual Board members may result in your firm being disqualified from consideration.  In addition, you may contact StepStone at [email protected].