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 W hitney 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 Investme nt Associates, bringing the total to $100 million for investment in timberland. The new money is earmarked for investment in Pennsylvania. Townsend assisted.
Funding for the allocations will come from cash reserves.
Colorado Fire a nd 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 decided to consol idate 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; Ban kers 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 t he 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 Diversi fied 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 administrat ion for the $60 million plan. Towers Perrin assisted.