The Los Angeles Department of Water and Power Employees’ Retirement Plan provides retirement and death benefits to employees of the LADWP, the largest municipal utility in the United States. With approximately $12 billion in total assets, the plan serves current and retired employees of both the water and power systems.
Investment Strategy
The LADWP Retirement Plan maintains a diversified investment portfolio across public equities, fixed income, private equity, real estate, infrastructure, and other alternatives. The Board of Administration sets asset allocation targets based on actuarial requirements and capital market expectations.
The alternatives program includes private equity investments in buyout and growth strategies, real estate across core and value-add profiles, and infrastructure investments in essential utility and transportation assets. The infrastructure allocation is a natural fit given the plan’s connection to the utility sector and the Board’s familiarity with infrastructure assets.
The plan has built its alternatives program over the past 15 years, focusing on manager quality, vintage year diversification, and risk management.
How to Approach
Fund managers should contact the LADWP Retirement Plan’s investment team in Los Angeles. The fund evaluates managers through a structured process that includes consultant screening, staff review, and Board-level approval. GPs should present a clear investment thesis, track record, and fee structure. Infrastructure and real assets managers may find particular receptivity given the plan’s utility orientation.
Frequently Asked Questions
What is the LADWP Retirement Plan's alternatives allocation?
The LADWP Retirement Plan allocates approximately 18% of its portfolio to alternatives including private equity, real estate, and infrastructure. With $12 billion in total assets, this represents roughly $2.2 billion in alternatives exposure.
Does the LADWP plan invest separately from other LA pension funds?
Yes, the LADWP Retirement Plan operates independently from the Los Angeles City Employees' Retirement System (LACERS) and the Los Angeles Fire and Police Pensions (LAFPP). Each has its own board, investment staff, and allocation decisions.
How can GPs approach the LADWP Retirement Plan?
GPs should contact the plan's investment staff in Los Angeles. The fund works with investment consultants and evaluates managers based on performance, team quality, and strategy fit. The plan is open to both established and emerging managers with differentiated approaches.
