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LACERA decreases venture capital allocation range, cites market conditions

TechCrunch · 8m

The Los Angeles County Employees Retirement Association (LACERA) has voted to decrease its allocation range to venture capital and growth equity. Currently, LACERA's venture portfolio is 10.8% of its private equity portfolio. While some experts view this as a puzzling move, others believe it is more of a one-off and not indicative of a broader trend. LPs like pensions are less likely to decrease their allocation to venture, as they view the current market conditions as an opportunity to improve their access. However, LPs may write smaller checks and thus may not need as much money allocated to the strategy. LPs will also continue to focus on existing managers, preferring large, established funds during uncertain times. Overall, analysts do not expect significant changes in LP allocation to venture this year.