LACERA re-ups to Canaan Partners’ latest fund in the market

The Los Angeles County pension committed up to $100m to Canaan Partners' latest fund, its second VC commitment of 2020.

Los Angeles County Employees’ Retirement Association at its May 13 meeting agreed to commit up to $100 million to Canaan Partners’ 12th fund. 

LACERA previously committed $75 million in 2017 to the firm’s 11th fund.

Canaan Partners did not disclose the fund target. The firm’s $800 million 11th fund was raised in July 2017 with commitments from more than a handful of public pension plans, including Alaska Permanent Fund, Los Angeles Fire & Police Pension System, San Francisco Employee’s Retirement System and Tennessee Consolidated Retirement System, according to data compiled by Private Equity International, an affiliate publication of Venture Capital Journal.

Canaan invests from one fund in early-stage tech and healthcare start-ups, including biopharma, medical technology, digital health, fintech, marketplaces and enterprise software.

The firm’s most notable recent exits include The RealReal, a secondhand luxury retailer, which went public in June 2019 with a valuation of about $1.6 billion, the sale of Zoosk, a dating app, for $258 million, and an $800 million sale of gaming company Kabam.

Canaan is LACERA’s second venture investment of 2020. Earlier this year, the Pasadena, California-based pension fund committed $37 million to a $1.09 billion Summit Partners Europe Growth Equity Fund III. 

LACERA’s $6.6 billion private equity portfolio, which includes venture capital, accounts for 12.1 percent of the fund’s $54.4 million total AUMs. The Los Angeles pension’s PE allocation exceeds its 10 percent target, according to the latest data provided to PEI