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Alternative Investment Consultant Request for Proposal (RFP)

RFP Documents:
Alternative Investment Consultant RFP(MS Word 2000 Format)
RFP Company Questionnaire (MS Excel Format)
Affirmative Action Statement (PDF Format)
Certification Regarding Compliance with the Americans with Disabilities Act (PDF Format)
Child Care Declaration Statement (PDF Format)
Certification of Compliance with Child Support (PDF Format)
May 11, 2004


Dear Proposer:

The Los Angeles City Employees' Retirement System (LACERS), a $7.7 Billion fund, is seeking to acquire through a request for proposal (RFP) process, the services of a consultant providing a combination of consulting and gatekeeper services for an approximately $500 million alternative investments program. Additionally, a specialized, non-traditional alternative investment program was implemented in late 2003 as a complement to the alternative investments asset class.

The scope of the consultant services will include the following: gatekeeper functions, strategic asset allocation advice, performance measurement, attribution analysis, and investment due diligence analysis and reporting. The program includes primary and secondary limited partnership interests in venture capital, buy-outs, and distressed debt. Gatekeeper services include identification and assistance in selection of managers, partners, and deals. Respondents must have experience providing alternative investment consulting services for both non-discretionary and discretionary clients with combined alternative investment assets of more than $1 billion. Respondents must also consult for at least one public pension fund whose total plan assets are at least $3 billion with an alternative investment program of at least $200 million. The selected consultant must be available for presentations to, and consultation with, the Board on a wide variety of alternative investment-related issues.

This search would also be inclusive of experience with a non-discretionary specialized, non-traditional investment partnership program. Specialized investments might focus on specific sectors of the economy perceived to be less efficient such as industries targeting underserved communities, might target new technologies like biotechnology, may take advantage of demographic opportunities such as catering to the growing seniors market, etc. The primary consideration in any deal is the risk-return characteristics. Achievement of other desired goals, such as minority manager participation or investment in Los Angeles, is ancillary to the primary purpose of achieving value added risk adjusted competitive investment returns.

The LACERS' $7.7 billion portfolio has target allocations as follows: Fixed Income 27%; Cash, 1%; U.S. Stocks 40%; Non-US Equities 18%; Real Estate 7%; traditional Alternative Investments 7% (the Specialized Alternative Investment Program is up to 10% of the Alternative Investments target allocation).

LACERS employs independent general, alternative, and real estate consultants. Consideration will be given to proposals from emerging firms to ensure that women and minorities have an opportunity to participate.

The Board, after reviewing all proposals submitted, may elect to hire multiple consultants if it determines that the best relationships can be established in this manner without significantly increasing the cost to the Fund.

The RFP and other required documents may be downloaded from LACERS’ website www.lacers.org. A list of required documents can be found in attached instructions Section IV “Proposal Requirements” of the RFP.

Please submit 13 copies by 4:00 P.M., PDT, Thursday, June 10, 2004 and mailed to:

Los Angeles City Employees' Retirement System
360 East Second Street, Second Floor
Los Angeles, California, USA 90012-4207


Finalist candidates may be requested to submit additional copies of their proposal. Any questions should be directed to Rod June or Dan Gallagher at (213) 473-7124 or emailed to lacers1@mindspring.com


Robert Aguallo, Jr., General Manager
Los Angeles City Employees' Retirement System