LP corner, week of Jan. 11, 2010

Ontario Teachers buys AIG’s Canadian mortgage insurance biz

The Ontario Teachers’ Pension Plan announced last week it is buying AIG Inc.’s (AIG.N) Canadian mortgage insurance business, which has assets of about $263 million. Terms of the deal were not disclosed.

Teachers, one of Canada’s largest limited partners, said it is the lead sponsor of a private investor group in the deal to buy AIG United Guaranty Mortgage Insurance Co. Canada, the second-largest private mortgage-insurance provider in Canada.

“We believe the mortgage insurance industry in Canada to be an attractive market, and that United Guaranty Canada is well positioned to grow its market position,” Erol Uzumeri, senior vice-president of Teachers’ Private Capital group, said in a statement.

“The company has a strong management team, and Teachers is prepared to support the growth of the business,” Uzumeri said. —Andrea Hopkins, Reuters

Schloss named CIO of NYC

Larry Schloss

has agreed to become the next chief investment officer for New York City. He most recently was chairman and CEO of private equity firm Diamond Castle Holdings, and previously ran CSFB Private Equity and DLJ Merchant Banking.

The CIO position is one of several not yet officially filled by new NYC Comptroller John Liu, who took office earlier this month. It is unclear if Rita Sallis—CIO under former NYC Comptroller William Thompson—will remain in any capacity.

Schloss did not return calls for comment, while a Liu spokeswoman declined to comment.

What will be more interesting to watch, however, is how Schloss gets used to the organizational cluster he’s about to inherit.

New York City operates five public pension systems, of which four invest in private equity. Each of those mini-systems has a board of trustees, but no independent investment staff. Instead, they rely on recommendations from the comptroller, which serves in a custodial and chief financial advisor role for each pension system (it also gets one vote on each board). The comptroller’s staffers also work closely with consultant Pacific Corporate Group, even though PCG reports directly to the different pension system trustees. —Dan Primack

New director to spearhead NH alternatives

Lawrence Johansen

has begun his new job as the director of investments for the New Hampshire Retirement System, a pension fund expected to commit $60 million per year to private equity through 2011.

Johansen spent more than 30 years in various positions at the New York State Teachers’ Retirement System. He replaces Rick Shafer, who left in May to join the Ohio Public Employees Retirement System as deputy chief investment officer.

As of June 30, 2009, New Hampshire had a total portfolio of $4.4 billion, with the actual alternative investment allocation of 2.3 percent. The target allocation is 10%, with a range of zero to 15 percent. In 2009 the state committed $20 million to secondary fund Lexington Capital Partners VII and $20 million to Audax Mezzanine Fund III. —Nancy Gordon

San Francisco LP taps Holcher

The San Francisco Employees’ Retirement System has named Donald Holcher as managing director of alternative investments and real estate, a new position. Holcher previously had spent 10 years as a real estate investment officer with the LP.

Lane moves to Ohio LP

John Lane

has been named director of investments for the Ohio Public Employees Retirement System. He previously ran pension investments for Eastman Kodak and served as chief investment officer for the Pennsylvania Public School Employees’ Retirement System.