Key Takeaways
- • LACERA, the $86bn Los Angeles County Employees Retirement Association, scrapped a planned $500m (€449.2m) credit mandate with Kayne Anderson after the asset manager agreed to sell its US real estate business to Bridgepoint.
- • Bridgepoint, the UK-listed private markets manager, announced in June 2026 that it would acquire Kayne Anderson's US real estate investment arm for $1.39bn.
- • LACERA had finalised the mandate just days before the acquisition was disclosed, prompting it to reassess the allocation and terminate the deal.
- • The planned mandate spanned real estate debt, infrastructure debt and private credit strategies, according to people familiar with the matter.
- • LACERA plans to redirect the capital to existing private credit managers or hold it for potential new manager hires; its $11.7bn credit portfolio stood at 12.5% of plan assets against a 13% target as of June 2026.
Summary
The Los Angeles County Employees Retirement Association (LACERA) has cancelled a planned $500m (€449.2m) credit mandate with Kayne Anderson, according to IPE Real Assets. The decision followed Kayne Anderson's agreement to sell its US real estate business to Bridgepoint, the UK-listed private markets manager.
Bridgepoint announced in June 2026 that it was acquiring Kayne Anderson's US real estate investment arm for $1.39bn. LACERA had finalised the mandate agreement just days before that corporate transaction was disclosed. The $86bn public pension fund then chose to reassess the allocation and terminate the deal.
According to people familiar with the matter, the mandate was structured across three strategies: real estate debt, infrastructure debt and private credit. LACERA now intends to reallocate the capital to existing managers within its private credit portfolio or reserve it for potential new manager hires.
The move comes as LACERA's credit exposure sits below its target. As of June 2026, the fund held an $11.7bn credit portfolio, representing 12.5% of total plan assets against a 13% target allocation. Kayne Anderson declined to comment on the cancellation.
Bridgepoint announced in June 2026 that it was acquiring Kayne Anderson's US real estate investment arm for $1.39bn. LACERA had finalised the mandate agreement just days before that corporate transaction was disclosed. The $86bn public pension fund then chose to reassess the allocation and terminate the deal.
According to people familiar with the matter, the mandate was structured across three strategies: real estate debt, infrastructure debt and private credit. LACERA now intends to reallocate the capital to existing managers within its private credit portfolio or reserve it for potential new manager hires.
The move comes as LACERA's credit exposure sits below its target. As of June 2026, the fund held an $11.7bn credit portfolio, representing 12.5% of total plan assets against a 13% target allocation. Kayne Anderson declined to comment on the cancellation.
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