Alternative Investment Consultant Request for Proposal
(RFP)
May 11, 2004
Subject: CONSULTANT FOR ALTERNATIVE INVESTMENTS REQUEST FOR
PROPOSAL
Dear Proposer:
The Los Angeles City Employees' Retirement System (LACERS), a $7.7
Billion fund, is seeking to acquire through a request for proposal
(RFP) process, the services of a consultant providing a combination
of consulting and gatekeeper services for an approximately $500 million
alternative investments program. Additionally, a specialized, non-traditional
alternative investment program was implemented in late 2003 as a complement
to the alternative investments asset class.
The scope of the consultant services will include the following: gatekeeper
functions, strategic asset allocation advice, performance measurement,
attribution analysis, and investment due diligence analysis and reporting.
The program includes primary and secondary limited partnership interests
in venture capital, buy-outs, and distressed debt. Gatekeeper services
include identification and assistance in selection of managers, partners,
and deals. Respondents must have experience providing alternative investment
consulting services for both non-discretionary and discretionary clients
with combined alternative investment assets of more than $1 billion.
Respondents must also consult for at least one public pension fund
whose total plan assets are at least $3 billion with an alternative
investment program of at least $200 million. The selected consultant
must be available for presentations to, and consultation with, the
Board on a wide variety of alternative investment-related issues.
This search would also be inclusive of experience with a non-discretionary
specialized, non-traditional investment partnership program. Specialized
investments might focus on specific sectors of the economy perceived
to be less efficient such as industries targeting underserved communities,
might target new technologies like biotechnology, may take advantage
of demographic opportunities such as catering to the growing seniors
market, etc. The primary consideration in any deal is the risk-return
characteristics. Achievement of other desired goals, such as minority
manager participation or investment in Los Angeles, is ancillary to
the primary purpose of achieving value added risk adjusted competitive
investment returns.
The LACERS' $7.7 billion portfolio has target allocations as follows:
Fixed Income 27%; Cash, 1%; U.S. Stocks 40%; Non-US Equities 18%; Real
Estate 7%; traditional Alternative Investments 7% (the Specialized
Alternative Investment Program is up to 10% of the Alternative Investments
target allocation).
LACERS employs independent general, alternative, and real estate consultants.
Consideration will be given to proposals from emerging firms to ensure
that women and minorities have an opportunity to participate.
The Board, after reviewing all proposals submitted, may elect to hire
multiple consultants if it determines that the best relationships can
be established in this manner without significantly increasing the
cost to the Fund.
The RFP and other required documents
may be downloaded from LACERS’ website www.lacers.org.
A list of required documents can be found in attached instructions
Section IV “Proposal Requirements” of the RFP.
Please submit 13 copies by 4:00 P.M., PDT, Thursday, June 10, 2004
and mailed to:
DANIEL P. GALLAGHER, CHIEF INVESTMENT OFFICER
Los
Angeles City Employees' Retirement System
360 East Second Street, Second
Floor
Los Angeles, California, USA 90012-4207
FACSIMILE COPIES WILL NOT BE ACCEPTED.
Finalist candidates may be requested to submit additional copies of
their proposal. Any questions should be directed to Rod June or Dan
Gallagher at (213) 473-7124 or emailed to lacers1@mindspring.com
Sincerely,
Robert Aguallo, Jr., General Manager
Los Angeles City
Employees' Retirement System
RA:DPG:RJ
Enclosures |
