Such a sale, which would represent about 15 percent of the system’s $13 billion in private equity commitments, is part of a repositioning of the portfolio to reduce the number of general partners and increase the portion of top-quartile funds, the source said. News of a possible secondary sale was first reported by Bloomberg. The city’s portfolio has $7 billion in invested private equity capital.
For Larry Schloss, the Bureau of Asset Management’s new chief investment officer, a sale of this size would represent an opportunity to put his imprint on the system’s portfolio.
In a March interview with Buyouts, Schloss said he planned to reduce the number of private equity manages within the portfolio, but said that doing so would take time. New York City’s five pensions have about $13 billion committed to 170 private equity funds managed by 110 general partners. “One of the problems with having too many funds is that you have too little money with each fund,” Schloss said.
Schloss, who has been the chief investment officer of New York City’s pension fund since 2010, grew to prominence as a co-founder of
New York City’s pensions provides benefits for more than 500,000 current and former city employees.