“It doesn’t mean our existing consultants are going to lose their jobs,” said Kenneth Goodreau, Rhode Island’s deputy general treasurer for finance. Still, Rhode Island General Treasurer Frank Caprio, who took office in January, wants to take stock of the state’s entire investment portfolio and operations, Goodreau said. Wilshire Associates serves as general consultant and PCG Asset Management serves as the private equity advisor to the $7.3 billion pension fund for state employees, teachers and municipal workers. Both advisors serve in a non-discretionary capacity. The RFPs will be issued as part of Caprio’s overall assessment of the state’s investment landscape. The language of the RFPs is still being tweaked by state officials.
Meantime, the ERSRI late last month made $35 million in commitments to two buyout funds and one venture capital vehicle. The state’s investment commission approved a $15 million commitment to
The state also made a $15 million commitment to
Rounding out September’s commitments was a $5 million slug to
Rhode Island’s current private equity allocation target is 7.5 percent. Going forward, the pension fund may look to direct money in funds targeting distressed debt and special situations. Managers who have a sector specialty and don’t rely mainly on leverage to generate returns will also have a leg up in future pitches to Rhode Island, Goodreau said.—J.P.