NYC Retirement Systems makes 1st private equity emerging manager investment
By Robert Steyer | December 28, 2012 3:42 pm
New York City Retirement Systems invested $20 million in ICV Partners III, the first direct investment under its new private equity emerging manager program, confirmed Michael Loughran, a spokesman for New York City Comptroller John Liu.
Mr. Loughran said Friday that the $20 million investment with ICV Partners, formerly known as Inner City Ventures, is the first investment from a pool of $400 million in assets devoted to an in-house private equity emerging managers program established by the $127.8 billion New York City Retirement Systems.
ICV Partners III is a leveraged buyout fund, according to a news release issued by Mr. Liu on Friday. ICV Partners focuses on investments in companies with sales of $25 million to $250 million, according to the firm's website.
“This initiative brings in terrific investment opportunities and at the same time expands the diversity of talent investing our funds,” Mr. Liu said in the news release. He is the investment adviser, custodian and trustee of the five city pension funds within the New York City Retirement Systems.
“By bringing the (emerging managers) program in-house, the city pension funds will realize cost savings in excess of 85% compared to the costs of a comparably sized externally managed fund-of-funds program,” the news release said.
“The direct program will help the pension funds expand opportunities to these up-and-coming fund managers. … More commitments through the (emerging managers) program are expected in the coming months.”
Four of the five city pension funds have made commitments to the emerging managers program — $150 million from the New York City Employees' Retirement System; $175 million from the New York City Teachers' Retirement System; $50 million from the New York City Police Pension Fund and $25 million from the New York City Fire Department Pension Fund, the news release.
Three of these funds invested in ICV Partners III — $14 million from the teachers' fund, $4 million from the police fund and $2 million from the fire department fund.