US - Four New York City pension funds with assets totalling US$85bn are set to invest US$175m in "first-time" funds, targeting those owned and managed by women or members of minority groups.
New York City Comptroller William C. Thompson, who is the custodian and investment adviser to the boards of the funds, said he had hired JP Morgan Investment Management and Fairview Capital Partners to invest the money with emerging private equity funds.
JP Morgan has been allocated US$117m and Fairview US$58m.
“We sought the most qualified managers to implement this important initiative,” he said. “JP Morgan and Fairview Capital have the experience, the skills and the relationships necessary to succeed in this exciting mandate.”
Last year the systems and Thompson tendered for one or more discretionary managers to implement the initiative.
Through the investment, the systems plan to: maximise the risk-adjusted return on capital invested; take advantage of the niche market, seeking to raise institutional capital to invest through private equity limited partnerships; and use niche strategies to achieve value “unavailable to investors pursuing broader strategies”.
“Emerging private equity managers targeted by this initiative may have strategies which include targeting undeserved markets for capital goods or services through such conventional private equity strategies as buyouts, venture capital, mezzanine finance and the purchase of secondary interests in private equity limited partnerships,” the Comptroller’s office said in a statement.
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