Los Angeles County Employees Retirement Association
OPEB Master Trust
Private Markets Investments
Search
March 2022
TABLE OF CONTENTS
I. Background Information ....................................................................................................... 4
II. Scope of Services .................................................................................................................. 4
III. Requirements and Instructions for RFP Response ................................................................ 5
A. Proposal Deadline .......................................................................................................... 5
B. Format and Content ....................................................................................................... 5
C. Questions Relating to this RFP ...................................................................................... 6
V. Tentative Timetable .............................................................................................................. 7
VI. Notice to Respondents Regarding the Public Records Act and Ralph M. Brown Act ......... 8
VIII. Responses become LACERA Property ................................................................................. 9
IX. Contract Negotiations ........................................................................................................... 9
XI. Reservations by LACERA .................................................................................................. 10
RFP ATTACHMENTS
A – Intent to Respond A1
B – OPEB Trust Investment Policy Statement B1
C – OPEB Trust Asset Allocation C1
D – Minimum Qualification Certification D1
E – Questionnaire E1
F – Supplemental Questionnaire (Microsoft Excel file) F1
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G – Supplemental Diversity & Inclusion Questionnaire G1
H – Supplemental Diversity & Inclusion Questionnaire Table (Microsoft Excel file) H1
I – Investment Management Agreement I1
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March 2022
Dear Potential Provider:
The Los Angeles County Employees Retirement Association ("LACERA") is requesting
proposals from qualified firms interested in providing discretionary separate account
management services to implement the OPEB Master Trust Private Markets Investments
Program (the "Program"). The specific services requested via this Request for Proposal (“RFP”)
are contained in Section II, Scope of Services.
If you are interested in responding, please submit your Intent to Respond (Attachment A) by
3:00 PM Friday, March 25, 2022, as well as your completed proposal by 3:00 PM Friday,
April 15, 2022, to:
Mr. Jude Pérez
Principal Investment Officer
LACERA
Detailed instructions for proposal submission are included in Section III of this RFP. Questions
concerning the RFP must be submitted in writing by 3:00 PM Monday March 28, 2022.
Thank you for your interest in providing services to assist LACERA in the implementation of its
Private Markets Program for the OPEB Trust, and we look forward to your response.
Sincerely,
Mr. Jude Pérez
Principal Investment Officer
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I. Background Information
The Los Angeles County Employees Retirement Association (“LACERA”) has been
appointed as the Investment Manager for the Los Angeles County’s, LACERA’s, and Los
Angeles County Superior Court's Other Post-Employment Benefit Trusts, which are
Participating Trusts under the LACERA Master OPEB Trust (the “Trust”). As the Trustee of
the Trust, the Board of Investments for LACERA (the “Board”) has the responsibility to
oversee investment of the Trust assets. The Board adopted its most recent strategic asset
allocation for the Trust in June 2021 to invest approximately 20% of the Trust’s assets in
private markets, across asset categories of equity, credit, real estate, and infrastructure.
The OPEB Trust was established in its current form in July 2016. The Board adopted the
most recent strategic asset allocation in June 2021, included as Attachment B. For additional
information about LACERA and the Trust, please refer to LACERA's Comprehensive
Annual Financial Report ("CAFR"), which is posted on the LACERA website,
www.lacera.com, under the tab "Annual Reports."
1
As of December 2021, the $2.6 billion
OPEB Trust portfolio consisted primarily of passive public market investments across
growth, credit, real assets and inflation hedges, and risk reduction and mitigation.
This RFP is to solicit proposals from qualified organizations to provide multi-asset mandate
separate account or manager-of-managers investment services for the OPEB Trust. The
purpose of the search is to provide the Trust exposure to private market investments. The
BOI selected an outsourced strategy as the most effective way to implement the Trust’s
private market allocation because of the resources required to manage it.
LACERA is currently undertaking the Search through the issuance of this RFP, with the
proposed timeline described in Section VI, Tentative Timeline.
II. Scope of Services
LACERA seeks one or more multi-asset mandate separate account or manager-of-managers
to invest in private markets. Selected manager(s) will provide LACERA with the following
scope of services:
1
https://lacera.com/accountability/annual-reports.
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III. Requirements and Instructions for RFP Response
A. Proposal Deadline
The completed proposal must be delivered by 3:00 PM, Friday, April 15, 2022. Any
proposal delivered after the proposal deadline will not be considered. Faxed
transmissions are not acceptable. The completed proposal are to be sent to the attention
of:
Mr. Jude Pérez
Principal Investment Officer
LACERA
-and-
Mr. Timothy Filla
Managing Principal
Meketa
Also send one electronic copy marked “REDACTED”. The redacted copy should
exclude all material from your proposal that you believe in good faith is exempt from
disclosure under the California Public Records Act (Cal. Gov. Code Sections 6250 et
seq.) (described in Section VII of this RFP). Redactions should appear as blacked out
material or blank page(s) with the word “REDACTED” or “PROPRIETARY” inserted.
B. Format and Content
Proposals are to address all the questions posed by LACERA in the order in which they
appear in this RFP. All requested information must be provided in the format and order
described below. Answers are to be succinct in a 12-point font and page limit maximums
(as indicated below) are to be complied with.
1. Cover Letter
A cover letter (1 page) shall be signed by the individual(s) who is (are) authorized to
bind the respondent contractually. The letter shall contain a statement to the effect
that the respondent is not currently under investigation by any regulatory agency,
state or federal, for any reason. The letter should summarize the services the firm
will perform for LACERA and the private markets covered, experience providing the
proposed services, and proposed fee structure.
2. Minimum Qualification Certification
Your firm must certify, by completing and signing Attachment D, that it meets the
minimum qualifications required.
3. Table of Contents
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The response must contain a one-page table of contents that identifies the major sub-
sections of the Questionnaire.
4. Questionnaires
Provide your response to the enclosed Questionnaire (Attachment E). Excluding the
requested Exhibits, your response must not exceed 50 pages. Responses shall be in
the prescribed format. The RFP and Attachments have been made available for
review and download via LACERA’s website (www.lacera.com) under the "Business
Opportunities" section
2
.
5. Attachments
Respondents seeking consideration as a LACERA Private Markets Program
discretionary separate account manager must provide all information requested to be
included as Exhibits to the completed Questionnaire.
Please submit Tables A, B, C, D, E, F, G, H, and I in Microsoft Excel file
(Attachment F) format by completing the templates provided in Microsoft Excel and
attaching as the requested Exhibits.
Please complete the Diversity and Inclusion Questionnaire (Attachment G) and
Diversity and Inclusion Questionnaire Table (Attachment H) and include your
response as an Exhibit.
The Exhibits do not contribute to the Questionnaire page limit as outlined in the
previous section; however, please do not include additional Exhibits or Attachments
in your response beyond what is requested in the Questionnaire, as they will not be
considered in this evaluation.
C. Questions Relating to this RFP
Direct all questions, inquiries, and requests for additional information concerning this
RFP to Jude Pérez no later than 3:00 PM March 28, 2022 by e-mail
([email protected]). All questions received and responses thereto will be posted
on LACERA’s website (www.lacera.com) under the "RFP Opportunities" section on or
about 3:00 PM April 4, 2022.
Additional Information
Please note that during this evaluation process LACERA staff will not answer any
questions related to the RFP except as set forth in the above paragraph. After March 28,
2022, if a question appears unclear to you, please state your interpretation of the question
and answer it accordingly.
To ensure that prospective service providers responding to this RFP have equal access to
information regarding the RFP and communications related to the RFP are consistent and
2
https://lacera.com/who-we-are/business-opportunities
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accurate so that the selection process is efficient and fair, a quiet period will be in effect
from the date of issuance of this RFP until the selection of one or more respondents is
completed and announced. During the quiet period, respondents are not permitted to
communicate with any LACERA staff member or Board member regarding this RFP
except through the point of contact named herein. Respondents violating the quiet period
may be disqualified at LACERA’s discretion. Respondents who are existing LACERA
service providers must limit their communications with LACERA staff and Board
members to the subject of the existing services provided by them.
IV. Evaluation Process
An evaluation committee consisting of LACERA staff members will review the RFP
responses. An initial screen and assessment will be conducted to both ensure that minimum
qualifications are met and that proposals align with the objectives of the search.
Responses that meet minimum qualifications and are fit for purpose shall be subject to
evaluation and scored on the following categories by the review committee:
1. Organization & Professional Staff
2. Global Multi-Asset Class Private Market Portfolio Construction
3. Investment Process
4. Operations and Operational Due Diligence
5. Performance and Risk Management
6. Fees
If advanced beyond round one of the evaluation phase, web-based and/or in-person interviews
with LACERA may be scheduled. Finalists may be asked to make oral presentations to the
Board of Investments and the final selection(s) will be made by the Board of Investments.
V. Tentative Timetable
The following is a tentative schedule for this search. The evaluation and staff
recommendation phases are subject to modification by LACERA.
LACERA RFP Issued
March 18, 2022
Submission – Letter of Intent
March 25, 2022
Submission – RFP Questions Deadline
March 28, 2022
LACERA Response to Written Questions
April 4, 2022
Submission – RFP Response Deadline
April 15, 2022
Invitations to Interview, as Warranted
2Q-3Q 2022
Board of Investments Deliberation/Selection
3Q-4Q 2022
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VI. Notice to Respondents Regarding the Public Records Act and Ralph M. Brown
Act
The information submitted in response to this RFP will be subject to public disclosure
pursuant to the California Public Records Act (California Government Code Section 6250, et.
seq., the “Act”). The Act provides generally that all records relating to a public agency's
business are open to public inspection and copying unless specifically exempted under one of
several exemptions set forth in the Act. If a respondent believes that any portion of its
proposal is exempt from public disclosure or discussion under the Act, the respondent must
provide a full explanation and mark such portion “TRADE SECRETS,” “CONFIDENTIAL”
or “PROPRIETARY,” and make it readily separable from the balance of the response.
Proposals marked “TRADE SECRETS,” “CONFIDENTIAL” or “PROPRIETARY” in their
entirety will not be honored, and LACERA will not deny public disclosure of all or any
portion of proposals so marked.
By submitting a proposal with material marked “TRADE SECRETS,” “CONFIDENTIAL”
or “PROPRIETARY,” a respondent represents it has a good faith belief that the material is
exempt from disclosure under the Act; however, such designations will not necessarily be
conclusive, and a respondent may be required to justify in writing why such material should
not be disclosed by LACERA under the Act. Fee and pricing proposals are not considered
“TRADE SECRET,” “CONFIDENTIAL” or “PROPRIETARY”.
If LACERA receives a request pursuant to the Act for materials that a respondent has marked
“TRADE SECRET,” “CONFIDENTIAL” or “PROPRIETARY,” and if LACERA agrees
that the material requested is not subject to disclosure under the Act, LACERA will either
notify the respondent so that it can seek a protective order at its own cost and expense, or
LACERA will deny disclosure of those materials. LACERA will not be held liable, however,
for inadvertent disclosure of such materials, data, and information or for disclosure of such
materials if deemed appropriate in LACERA’s sole discretion. LACERA retains the right to
disclose all information provided by a respondent.
If LACERA denies public disclosure of any materials designated as “TRADE SECRETS,”
“CONFIDENTIAL” or “PROPRIETARY”, the respondent agrees to reimburse LACERA
for, and to indemnify, defend and hold harmless LACERA, its Boards, officers, fiduciaries,
employees and agents from and against:
1. All claims, damages, losses, liabilities, suits, judgments, fines, penalties, costs, and
expenses, including without limitation attorneys’ fees, expenses, and court costs of any
nature whatsoever (collectively, Claims) arising from or relating to LACERA’s non-
disclosure of any such designated portions of a proposal; and
2. All Claims arising from or relating to LACERA’s public disclosure of any such
designated portions of a proposal if LACERA determines disclosure is deemed required by
law, or if disclosure is ordered by a court of competent jurisdiction.
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If LACERA staff recommends any respondent to the Boards for hiring, such
recommendation, the reasons for the recommendation and the relevant proposal(s) will
appear on a publicly posted agenda and in supporting materials for public meetings of the
Boards.
Nothing in this RFP requires LACERA to withhold any documents from production under
the Act.
VII. Principles for Responsible Investment
On November 19, 2008, LACERA’s Board of Investments adopted the Principles for
Responsible Investment (“PRI” or “Principles,” www.unpri.org/principles). The Principles
were created by the United Nations to provide investors with a global structure for
integrating environmental, social, and governance (“ESG”) criteria into investment decision-
making processes to realize better long-term returns. As a result, LACERA is requesting that
prospective investment managers consider becoming a PRI signatory and incorporating the
Principles into the firm’s investment process, as long as making such a commitment is
consistent with your fiduciary responsibilities and does not result in any additional costs.
VIII. Responses become LACERA Property
The information you submit in response to this RFP will become the exclusive property of
LACERA. Your response will not be returned to you, and LACERA will not reimburse you
for response preparation expenses.
IX. Contract Negotiations
If LACERA’s Board of Investments so authorizes, staff will negotiate a manager services
agreement with the approved firm. LACERA may terminate negotiations, at its sole
discretion, if it believes a satisfactory agreement cannot be negotiated. LACERA reserves
the right to award a contract based upon proposals received. You should not rely upon the
opportunity to alter your proposal (e.g., fees, services to be provided) during contract
negotiations.
The contract negotiated, if any, must allow LACERA to terminate (a) for its convenience
upon not more than 30 days’ notice, (b) if funds are not appropriated for the services to be
provided, and (c) for default.
The general form of the contract LACERA intends to use for the mandate set forth in this
RFP is attached as Attachment I. By submitting a proposal without comment on the
contract, you will be deemed to have agreed to each term in the contract, and to not seek any
modifications to the contract. If you object to a term in the contract, or wish to modify or
add terms to the contract, your proposal must identify each objection, and propose language
for each modification and additional term sought, including the rationale for the change.
LACERA reserves the right to make changes to the contract prior to execution, including
material changes.
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X. Contract Terms and Conditions
The winning bidder will be required to comply with applicable California law
and LACERA's Investment Policy Statement, including without limitation the following:
A. Fiduciary Responsibility
The Respondent will acknowledge that it is a fiduciary under the contract and as a
fiduciary shall perform its duties with the standard care, skill, prudence and diligence that
apply to other reputable experts practicing in the same field.
B. Conflicts and Economic Interests
The Transition Management Service Provider will affirm that it will report economic
interests and conflicts in accordance with California law and LACERA policy, including
the Code of Ethical Conduct, by filing and submitting to LACERA California State Fair
Political Practices Commission Form 700 – Statements of Economic Interests by key
personnel on an annual basis.
XI. Reservations by LACERA
In addition to the other provisions of this RFP, LACERA reserves the right to:
Cancel or modify this RFP, in whole or in part, at any time.
Make such investigation as it deems necessary to determine the respondent’s ability to
furnish the required services, and the respondent agrees to furnish all such information for
this purpose as LACERA may request.
Reject the proposal of any respondent who has failed to comply with the requirements of this
RFP, or who is not currently in a position to perform the contract, or who has previously
failed to perform similar contracts properly, or in a timely manner or for any other reason in
LACERA’s sole discretion.
Waive irregularities to negotiate in any manner necessary to best serve the public interest,
and to make a whole award, multiple awards, a partial award, or no award.
Award a contract, if at all, to the firm which will provide the best match to the requirements
of the RFP and the service needs of LACERA in LACERA’s sole discretion, which may not
be the proposal offering the lowest fees or achieving the highest score.
Request additional documentation or information from respondents. Requested information
may vary by respondent. LACERA may ask questions of any respondent to seek clarification
of a proposal or to ensure the respondent understands the scope of the work or other terms of
the RFP.
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The right to choose to not enter into an agreement with any of the respondents to this RFP or
negotiate for the services described in this RFP with a party that did not submit a proposal.
Determine the extent, without limitation, to which the services of a successful respondent are
or are not actually utilized.
Defer selection of a winning bidder to a time of LACERA’s choosing.
Consider information about a respondent in addition to the information submitted in the
response or interview.
Add terms and conditions during contract negotiations.
The information that a respondent submits in response to this RFP becomes the exclusive
property of LACERA. LACERA will not return any proposal or reimburse proposal
preparation expenses.
LACERA shall not be liable for any costs respondents incur in connection with the
preparation or submission of a proposal.
