Key Takeaways
- • A New England state pension fund is issuing a Request for Information (RFI) to explore the development of a private markets emerging manager program, signaling institutional appetite for diversified emerging manager exposure in alternatives.
- • The pension fund recently hired a new international growth equity manager, indicating active portfolio repositioning and continued expansion of its manager roster across multiple asset classes.
- • The RFI process will allow the pension system to gather market intelligence on emerging manager program structures, operational requirements, and best practices before committing capital or launching a formal RFP.
Summary
A New England state pension fund is moving forward with plans to establish a private markets emerging manager program, announcing it will issue an RFI to solicit information and insights from service providers and potential partners on program design and implementation.
The issuance of an RFI represents a preliminary phase in the fund's evaluation process, allowing the pension system to understand the landscape of emerging manager programs before potentially issuing a formal Request for Proposal. This approach enables the retirement system to gather operational details, identify best practices, and assess the infrastructure and staffing required to support an emerging manager allocation strategy.
The pension fund's recent hiring of a new international growth equity manager underscores its broader strategy of diversifying its manager base and expanding geographic exposure. This personnel move, combined with the emerging manager program initiative, suggests the fund is actively repositioning its alternatives strategy to include both established international equity expertise and emerging talent in private markets.
For emerging managers and service providers, the RFI represents a potential pathway to capture institutional capital from a state pension system. For the fund itself, the program could provide exposure to higher-growth investment strategies while potentially achieving fee efficiencies and fostering relationships with emerging talent in the alternatives space.
The issuance of an RFI represents a preliminary phase in the fund's evaluation process, allowing the pension system to understand the landscape of emerging manager programs before potentially issuing a formal Request for Proposal. This approach enables the retirement system to gather operational details, identify best practices, and assess the infrastructure and staffing required to support an emerging manager allocation strategy.
The pension fund's recent hiring of a new international growth equity manager underscores its broader strategy of diversifying its manager base and expanding geographic exposure. This personnel move, combined with the emerging manager program initiative, suggests the fund is actively repositioning its alternatives strategy to include both established international equity expertise and emerging talent in private markets.
For emerging managers and service providers, the RFI represents a potential pathway to capture institutional capital from a state pension system. For the fund itself, the program could provide exposure to higher-growth investment strategies while potentially achieving fee efficiencies and fostering relationships with emerging talent in the alternatives space.
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