Firms & Funds

NYC pension lifts EM program in PE by two-thirds to $1.5 bln

-
New York City Retirement System, pension fund, private equity
New York City's iconic Grand Central Terminal on Feb. 7, 2019. Photo by Robert Daniel, Buyouts
  • Why is this important: Newer managers, including women- and minority-owned firms, can benefit from program
  • Overall AUM: $200.2 bln
  • EM assets in PE lifted by two-thirds to $1.5 bln
  • Contact: Josiel Estrella at +1 212-669-4177 or jestrel@comptroller.nyc.gov

New York City Retirement System added $600 million to its emerging-managers program in private equity, New York City Pension Fund and City Comptroller Scott Stringer said.

The increase brings the program’s total assets to $1.5 billion. Total assets for small and emerging investment managers expanded to $8.8 billion across all asset classes, a 57 percent increase in five years.

The comptroller’s office said it expected to allocate the $600 million over the next three to four years.

The PE emerging-managers program helps emerging managers, including women- and minority-owned firms. The program is part of NYCRS’s platform.

“Our emerging manager program enables us to invest with the best of the best, period,” Stringer said in a statement. “It shouldn’t matter who you know or what your background is. If you can deliver for New York City retirees, you deserve a shot — and that’s what this program gives you,”

Criteria for PE managers, the emerging-managers page on the comptroller’s website shows, include:

  • Primarily Funds I – III, raising up to $1 billion with a broad institutional investor base;
  • Buyout, growth equity, and distressed/special situations investment strategies;
  • Firms with institutional-quality middle and back offices and strong operational controls (reputable auditor, fund administrator and employment of an independent third-party valuation firm, where appropriate).

New York City’s system has five pensions: Teachers’ Retirement System, New York Employees’ Retirement System, Board of Education Retirement System, Fire Department Pension Fund and Police Pension fund.

The system has a combined $200.2 billion in assets and a $12 billion PE portfolio.

In December, Stringer named J. David Enriquez to head PE in the city’s Bureau of Asset Management, Buyouts reported.

Action Item: The Emerging Managers page: https://on.nyc.gov/2HoB3wm

Update: This story was updated to add the expected time frame for allocating the additional funds.

Correct: The city system’s total assets are $200.2 billion. The figure has been corrected.