Massachusetts Water pension fund looking to allocate to private equity/debt

Massachusetts Water Resource Authority Employees' Retirement System, Chelsea, is looking for an investment manager or managers to run up to $12 million in a private equity/debt fund.

Prospective managers must be raising a buyout/special situation or opportunistic credit fund to be considered. Secondaries and fund of funds will not be considered, according to an RFP.

The board prefers proposed funds to be raising at least $250 million, although the board might consider those raising lower amounts.

This search represents a new allocation for the $492 million pension fund, said Carolyn Russo, executive director of the retirement system. The retirement system has several other private equity funds that are nearing the end of their life expectancy, so this search is being conducted to keep the plan at its target allocation moving forward.

Investment consultant NEPC is assisting with the search. The RFP is available on NEPC's website. Proposals are due by 4 p.m. EDT Aug. 11. Ms. Russo expects a decision to be made in October or November.