By David G. Barry
System of Louisiana (TRSL) has
for the first time selected a manager to locate, evaluate and commit to
co-invest opportunities by private market investment funds.
HarbourVest Partners was ranked higher by TRSL’s
Investment Committee than the other three finalists: Neuberger Berman,
Hamilton Lane and StepStone Group. The mandate is for $300 million
over a three-year period. The winning firm is supposed to have discretionary
investment authority to direct, suggest, manage, monitor or acquire any private
equity and real asset co-investments subject to the pension fund’s investment policy statement.
TRSL’s investment committee
also approved commitments of up to $75 million in Blackstone Capital
Partners IX, L.P., up to $75 million in Blackstone Real Estate Partners
X, L.P. and up to $100 million in Castlelake VI, L.P.
Earlier this year, TRSL
approved a new asset allocation strategy which increased the maximum allowable
allocation for private assets to 38% from 35%. As of February 28, the $26
billion fund had 37.7% of its assets in alternatives, which exclude core real
estate. Private equity also was increased to 18% from 14% and venture capital
to 7% from 3%.
The investment committee also voted to retain Dimensional Fund Advisors as a Global REIT manager and to interview CenterSquare Investment Management LLC and Cohen & Steers Capital Management, Inc. as finalists for the role. Two other firms responded to the solicitation for proposals: Brookfield Public Securities Group, LLC and MFS Institutional Advisors, Inc.