Private equity financial buyers will invest about $500 billion in 1,000 companies in the next three years, but that might be a conservative estimate because of a change in the tax code last year. That change expanded the legal number of limited partners to 500 from 100 and allowed wealthy investors to invest with institutions, said L. Keith Mullins, emerging-growth-stock analyst with Salomon Smith Barney Inc.
Funds of funds that allow as little as $500,000 to be invested in private equity partnerships also are contributing to the rise in the estimates, Mr. Mullins said.
Austin Reed Group, London, hired Northern Trust Global Advisors to manage its L52 million ($85 million) pension fund, said Jill Anders, corporate secretary.
Northern beat out Morgan Grenfell, Schroder Capital Management Legal & General and incumbent Fleming Investment Management.
Northern will place the assets in its Diversified Fund of the United Kingdom pooled fund.
Buck assisted in the search.
Bell Communications Research Inc., Morristown, N.J., hired Hewitt Associates to conduct a search for a new international equities manager, said Christopher O'Connor, manager pension investments.
The size of the portfolio has not yet been decided, but will come from the domestic equity allocation, which is now 50% of the $1.6 billion defined benefit fund. The rest of the fund is invested 15% international equities, 30% domestic fixed income, 4% real estate, 1% cash.
Hewitt expects to have a list of finalists in a couple of weeks, Mr. O'Connor said