Limited partners: Massachusetts Pension Reserves Investment Management (MassPRIM), Oregon Public Employees Retirement Fund
Proposal requests: seeking new alternative asset advisors
Assets under management: MassPRIM: $27 billion; Oregon: $55.3 billion
Committed alternative asset capital under management: MassPRIM: $6.9 billion; Oregon: $15.2 billion
Oregon PERF appears to have finally lost faith in
Oregon PERF requires candidates to have provided consulting services to investors with private equity assets of at least $1 billion in aggregate, to have a minimum of three years experience providing such consulting services to public or private pension plans or comparable experience, and to be able to commit a minimum of 20% of their firm’s available time to OPERF.
The Oregon PEFR portfolio includes buyout funds, venture capital funds and special situation funds. The pension fund has a target allocation of 12% for alternative assets. As of the end of this June, Oregon PERF has more than 139 funds in its LP portfolio, including 125 active ones, totaling more than $14 billion in committed capital.
Meantime, MassPRIM expects to choose a new discretionary advisor by Jan. 1, 2007. MassPRIM’s requirements are similar to Oregon’s. The pension system requires candidates to have had responsibility for alternative asset investment consulting for public or private investors with aggregate portfolios of at least $1 billion in commitments; to have provided consulting services to at least five public or private funds, including at least one public pension fund; and to have at least three years experience as a lead investor overseeing investments in venture, buyout and distressed debt.
MassPRIM says it expects to enter into a three year consulting agreement with the winning firm. It scheduled tentative site visits and investment committee interviews for last week, and plans to take up the matter at its Dec. 5 board meeting.
MassPRIM invests in buyouts, venture capital and special situation funds. It has a target allocation of 10% for alternative investments, not including real estate, but its actual allocation as of the end of July in alternatives was 6.4 percent. As of the end of June, MassPRIM had committed more than $6.85 billion to 212 limited partnerships.
These latest moves come after the two large California pensions, the California State Teachers’ Retirement System (