Nevada System of Higher Education, Reno, will redeem a $45 million investment made by its $450 million operating pool in Farallon Capital Management’s flagship multistrategy hedge fund.
The redemption request results from liquidity concerns, according to Ruby Sharman, banking and investor director. , noting “the board is uncomfortable investing in illiquid assets with funds from the operating pool” because it is the source of spending capital for colleges in the system.
The system made its first investments in Farallon’s hedge fund in 1999 and 2000, Ms. Sharman confirmed.
A $14 million investment in the Farallon fund made from the system’s $200 million endowment fund is not affected.