AJOVista LLC will be the fourth money management startup the $10.2 billion Missouri Local Government Employees Retirement System helps get off the ground, said Brian K. Collett, the Jefferson City-based pension fund's chief investment officer since 2005.
Every situation has been a little different, depending on the needs of the general partner, he said.
For Edwardsville, Ill.-based real estate investor Fireside Financial LLC, the first firm Missouri LAGERS backed in 2008, the pension fund didn't take a stake in the newly launched firm. Mr. Collett said in an interview at that point he was still thinking through how the fund could support an investment team it had worked with successfully that was looking to set up shop on its own because he had "never heard of anybody doing it before." Instead, Missouri LAGERS became the new firm's first institutional client, providing it a running start by accepting "normal fees" on its allocations rather than using its scale to squeeze out hefty discounts. Missouri LAGERS also provided Fireside Financial with advice on reporting requirements and "back-office stuff," he said.
For the subsequent three firms — Greenwich, Conn.-based real estate debt boutique Sound Mark Partners LLC in 2013, New York-based real estate equity shop Machine Investment Group LP in 2020 and Boston-based equity boutique AJOVista, which opened its doors on Oct. 1 — Missouri LAGERS acquired stakes of 10% to 33% for between $1 million and $6 million each, Mr. Collett said.