Key Takeaways
- • The Los Angeles County Employees Retirement Association (LACERA) is moving to pull a $100 million private credit commitment from Alcentra, citing departures of key investment professionals at the manager, according to PEI Private Equity.
- • The committee recommended redeploying the non-US private credit mandate to Crescent Capital, another manager the pension system had already approved for its private credit program.
- • The decision reflects the sensitivity of institutional allocators to key-person turnover at credit managers, particularly in the early stages of the COVID-19 market dislocation in May 2020.
Summary
According to PEI Private Equity, a Los Angeles public pension is preparing to withdraw a $100 million private credit commitment to Alcentra, the US-based credit manager, following departures from the firm's team. The article, written by Chris Witkowsky and published on 13 May 2020, reports that the pension's investment committee has recommended redeploying the non-US mandate to Crescent Capital, which the system had already approved as part of its private credit program.
The move underscores how institutional investors weigh personnel stability when underwriting credit strategies. Key-person changes at a manager can trigger reviews of mandates and, as in this case, reallocations to managers already vetted by the pension's consultants and staff. The recommendation is a committee-level step and the source material does not indicate whether the full board has finalized the decision.
The source material available for this summary is limited, and it does not provide detail on the specific individuals who departed, the size of Alcentra's total private credit platform, or the performance of the affected strategy. Readers seeking further detail on the departures or the terms of the redeployment should consult the original PEI Private Equity coverage.
The move underscores how institutional investors weigh personnel stability when underwriting credit strategies. Key-person changes at a manager can trigger reviews of mandates and, as in this case, reallocations to managers already vetted by the pension's consultants and staff. The recommendation is a committee-level step and the source material does not indicate whether the full board has finalized the decision.
The source material available for this summary is limited, and it does not provide detail on the specific individuals who departed, the size of Alcentra's total private credit platform, or the performance of the affected strategy. Readers seeking further detail on the departures or the terms of the redeployment should consult the original PEI Private Equity coverage.
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