Los Angeles-based investment bank and advisory firm Houlihan Lokey is exiting the public pension advisory business, according to firm executives. The firm, which offers restructuring, mergers and acquisitions and financial advisory services, has advised pension funds on private equity investments and securities valuations. It’s leaving the field at least in part due to concerns that contractual requirements to indemnify clients against potential losses pose too great a risk, a source said. A Houlihan Lokey spokesman declined to comment. Among clients the firm has advised are the California Public Employees’ Retirement System, the California State Teachers’ Retirement System, and the Teachers’ Retirement System of Illinois. ....