The Pension Benefit Guaranty Corp., Washington, is looking for a special situations investment manager for its trust fund.
One of two PBGC investment funds, the trust fund receives assets from terminated pension plans. Unlike the revolving fund, which invests PBGC premium payments in Treasury securities, trust fund assets “can be more flexibly invested,” including in equities, debt obligations and real estate, according to the RFP.
Trust fund assets “by their nature or because of regulatory constraints, are typically unusual, illiquid or difficult to market,” the RFP said. Examples given include securities of private or closely held companies, equity positions, promissory notes, real estate, commodities and bankruptcy claims.
The special situations investment manager provides investment, liquidation and advisory services, with the objective of assessing, marketing and liquidating assets.
Fees are based on an assumed group of positions valued at $600 million, and annual liquidations of $120 million. Of those liquidations, an estimated $50 million are in marketable securities and $70 million in non-marketable securities.
The contract is for one year, starting Aug. 31, with the option of nine, one-year renewal periods. Further details were not available.
The RFP is available on a federal government procurement website. Proposals are due at 9 a.m. EST on Feb. 17. A hiring date was not specified.
Fiorela Kvalevog, procurement officer, could not be reached for further information by press time.
