L.A. pension commits to Pear Ventures

The Los Angeles Fire and Police Pensions (LAFPP) plans to commit $5 million to Pear Ventures’ third fund.

LAFPP said in an agenda issued prior to its Sept. 19 meeting that the investment board in July approved a commitment of up to $7.5 million in the fund, but the LP reduced the commitment to $5 million due to oversubscription.

Pear Ventures is in registration to raise $155 million for its third seed-stage fund, which is more than double the $75 million the firm raised for Fund II in 2016. The firm is currently based in Palo Alto, California, but is relocating to larger digs soon in Menlo Park, as Venture Capital Journal previously reported.

The investment in Pear Ventures appears to be a new relationship in that venture firm for LAFPP. But the pension has been an active investor in the venture capital sector this year.

The LP recently committed $40 million to funds from Oak HC/FT, Pelion Venture Partners and Threshold Ventures, the early-stage firm formerly known as Draper Fisher Jurvestson.

In all, LAFPP has committed about $90 million to venture funds so far this year across eight vehicles from new and existing manager partnerships, according to an examination of the meeting minutes by VCJ.

Other recent venture commitments include $5 million to Equal Ventures I, $20 million to New Enterprise Associates 17 and $20 million to Polaris Partners IX, all of which closed in June.

The pension fund currently targets a 12 percent allocation to private equity. Venture capital accounted for 24 percent of the PE portfolio at the end of July. The VC portfolio is currently valued at more than $1.06 billion.

LAFPP was founded more than 100 years and currently serves about 26,000 people both active and retired. The pension fund has more than $23 billion in assets under management.

Rebecca Szkutak contributed to this report.