SEARCHES & HIRINGS
Pennsylvania State Employes' Retirement System, Harrisburg, will allocate up to $200 million to four venture capital managers and one real estate manager.
The $21 billion system will invest up to $75 million with Kelso Investment Associates VI for middle-market buyouts; up to $40 million with HarbourVest International Private Equity Partners III, an international fund of funds; and up to $35 million each with Whitney Equity Partners III for investment in emerging growth companies, and FMC Venture Partners VIII, which will focus on the service industry. Cambridge assisted.
In real estate, up to $15 million more will go to Forest Investment Associates, bringing the total to $100 million for investment in timberland. The new money is earmarked for investment in Pennsylvania. Townsend assisted.
Funding will come from cash reserves.
Colorado Fire and Police Pension Association, Englewood, committed $10 million to the Thomas H. Lee Equity Fund IV, a private equity buyout fund. Funding will come from the $1.9 billion fund's cash reserves. Pacific Corporate Group assisted.
Teeside Pension Fund, Middlesbrough, England, consolidated its global custody arrangements with RBS Trust Bank effective Feb. 1. Previously, the £780 million ($1.27 billion) pension fund had used four custodians, but consolidated in the interest of efficiency and cost savings, said Fred Green, head of investments at Middlesbrough Borough Council, which administers the fund.
Midland Securities Services had provided custody for domestic securities; Bankers Trust for Far Eastern securities; Merrill Lynch for U.S. securities; and BZW Securities for continental European equities.
Creighton University and Health Future Foundation, Omaha, Neb., hired M&I Global Securities Lending to provide third-party securities lending services for its combined $250 million endowment funds. About $200 million will be available to be part of the securities lending program. Custodian First National Bank of Omaha assisted.
The university also is increasing its international exposure to 10% of the fund's equity portfolio from 3%. The additional allocation is likely to stay with current manager The Common Fund, although a manager search is possible once the portfolio reaches a certain dollar amount, said Lee Galles, associate vice president for finance and treasurer. A search has yet to be discussed by trustees, he added.
Lee Memorial Health System, Fort Myers, Fla., hired Diversified Investment Advisors as a bundled provider for its 403(b) plan. Diversified replaces Lincoln Insurance, which was included in the search. Diversified will provide 14 investment options, education, record keeping and administration for the $60 million plan. Towers Perrin assisted.