T
he Los Angeles Water and Power Employees Retirement Plan has invested $75m in Locust Point Capital's US real estate credit fund. The pension fund allocated $65m from its Retirement Fund and $10m from its Retiree Health Benefits Fund to the Locust Point Private Credit Fund III.
As of January, Locust Point Capital had secured $536.3m in capital commitments for the fund. The real estate credit fund aims for a 12-14% net internal rate of return by investing in lower middle-market value-add assets. It provides senior and subordinated debt, as well as preferred equity, with transactions ranging from $2 to $10m.
The fund focuses on secondary and tertiary US markets, particularly senior housing and care. Locust Point Capital declined to comment on the investment.
