Massachusetts Pension Reserves Investment Management Board, Boston, today approved plans to issue an RFP for at least one firm to provide general consulting and hedge fund consulting services, pending further discussions with the boards investment committee about what details to include in the RFP.
Cliffwater, general and hedge fund consultant for the $45.7 billion system through March 31, wont bid for the general consultants job because the firm has decided to focus on hedge funds and other alternatives strategies, said Michael Travaglini, the boards executive director. Cliffwater can bid for the hedge fund consulting post. The board plans to issue the RFP at the end of November.
Cliffwater CEO Stephen Nesbitt confirmed that his firm is focusing on alternatives.
Separately, the PRIM board approved committing up to €80 million ($110 million) to Charterhouse Capital Partners IX, a European buyout fund.
Also today, PRIM CIO Stan Mavromates said preliminary estimates show the systems assets declined by about $8 billion, or 15%, in the first nine months of the year. While conceding such declines are painful, Mr. Travaglini noted that PRIMs assets had surged roughly 80% over the five years ended Dec. 31, 2007, adding that the state fund has no plans to change its asset allocation.