Strategic Partners buys $1bn LACERA portfolio – exclusive

Greenhill advised the Californian pension to split the interests into main and tail-end portions.

Strategic Partners has emerged as buyer of a portfolio of private equity stakes sold by Los Angeles County Employees’ Retirement AssociationSecondaries Investor has learned.

The Blackstone unit, which is in market with its latest dedicated private equity secondaries fund, acquired the $1-billion-plus portfolio in a transaction advised by Greenhill, according to three sources familiar with the matter.

In August, Greenhill recommended LACERA sell $1.1 billion split between two portfolios, the main portfolio containing 37 positions worth $1.09 billion, and a $55 million tranche made up of 44 small and tail-end positions. The latter was to be marketed separately, most likely at a greater discount to net asset value.

LACERA announced in February that it wanted to sell up to $1.4 billion of private equity stakes, as Secondaries Investor reported.

In May it chose Greenhill, Evercore and Campbell Lutyens for its “bench of approved service providers,” a group of advisor relationships that it can call on to buy and sell interests.

This deal is the latest in a series of big portfolio sales to emerge in November. On Tuesday Canada Pension Plan Investment Board emerged as the buyer of a $1.7 billion portfolio of stakes from Ontario Teachers’ Pension Plan, while on Thursday Secondaries Investor reported that Ardian had picked up a $1 billion portfolio from Maryland State Retirement and Pension System.

Strategic Partners is targeting $8 billion for Strategic Partners Fund VIII, Secondaries Investor reported in May. It is set for a 2019 close, according to Blackstone chief operating officer Jonathan Gray, speaking in October on a call announcing the firm’s third quarter earnings.

Strategic Partners and Greenhill declined to comment. LACERA did not return a request for comment by press time.