University of Maine System, Bangor, hired Bain Capital to manage about $18 million in bank loan portfolios for the system's $317 million managed investment pool of six endowment funds and $30 million pension fund, said Tracy E. Elliott, vice president of finance and controller, in an email.
The hiring is the result of the termination of bank loan manager Guggenheim Investments, which was originally hired in May 2017 following the creation of a new 5% target allocation to bank loans, funded by the elimination of a 5% global multisector fixed-income target. Bain Capital had been the other finalist in the shortlist search in 2017.
The system terminated Guggenheim due to the risks of the Securities and Exchange Commission's investigation into whether the firm inappropriately steered client money into Bob Diamond's businesses. Mr. Diamond owns Atlas Mara Ltd., in which Guggenheim has owned shares since 2013.
A Guggenheim spokesman declined to comment.
Investment consultant NEPC assisted.
Bloomberg contributed to this story.