New Mexico Educational Retirement Board, Santa Fe, terminated Aldus Equity Partners as its private equity investment adviser and dropped a $75 million private equity co-investment commitment with the firm, according to CIO Bob Jacksha.
The board, which oversees $6.7 billion in assets, terminated the firm in response to pay-to-play allegations against Aldus in connection with investments of the $122 billion New York State Common Retirement Fund, Albany, and differences between Aldus’ placement agent report and a staff investigation into marketers used by the board’s investment managers, he said in an e-mail.
NEPC, general consultant to the $6.7 billion board, will take on private equity advisory services for six months while the board searches for a replacement, Mr. Jacksha said. An RFI or RFP will be posted on the board’s website, www.nmerb.org, but no timetable has been set yet.
Rick Ericson, spokesman for Aldus Equity Partners, could not be reached by deadline.
The educational board also imposed a temporary ban on the use of placement agents or third-party marketers by managers while it studies whether to make the ban permanent, Mr. Jacksha said. The board will hold a working session on placement agents and third-party marketers at the end of June.
Separately, the $11.5 billion New Mexico State Investment Council, Santa Fe, on Tuesday banned any future investments with money managers that use placement agents and will require disclosure of any money manager’s internal marketing teams and their relationships.
The council will also require the disclosure of third-party fees paid by managers before investments are finalized and will bar investment managers from contributing to the campaign of any elected or appointed officials who might have influence over the New Mexico State Investment Office and its advisory and oversight boards for two years before and during the full term of the investment, said Charles Wollmann, council spokesman.
The council terminated Aldus as its private equity consultant in April.
