DiNapoli Announces $1 Billion Commitment to Emerging Managers
Increase Will More Than Double Private Equity Commitments to
Minority- and Women-Owned Managers
New York State Comptroller Thomas P. DiNapoli announced he is increasing private equity commitments to emerging managers, with a focus on women- and minority-owned firms, to $1 billion over the next several years. The move will more than double the amount of capital available to emerging managers who invest on behalf of the New York State Common Retirement Fund.
“This unprecedented commitment by the Fund is a direct result of the outstanding opportunity emerging managers offer,” said DiNapoli, who is sole trustee of New York State’s $154.5 billion Fund. “One of my top priorities has been to expand the diversity of our manager pools. The firms in our emerging manager program, the majority of which are women- and minority-owned, have proven to be more entrepreneurial, focusing on smaller ends of the market. These investments have created a stabilizing force for the Fund.”
Currently, the Fund has committed $475 million to its private equity emerging manager program. For the 2007 fiscal year, the Fund’s entire private equity portfolio returned 28.7 percent, which was a significant driver in the Fund’s overall 12.58 percent return. The Fund has significant exposure to the large buyout area and the increased commitment to the emerging manager program is expected to help the Fund diversify its overall private equity portfolio.
The Fund began a formal emerging manager private equity program in 2005. The program is currently managed by Aldus Equity Partners, a fund-of-funds manager with a mandate to identify emerging managers that offer attractive investment opportunities. The Fund will be conducting a competitive process to select one or more fund-of-funds managers to implement the $1 billion commitment.
DiNapoli announced his plans to increase the allocation during conferences sponsored by the National Association of Investment Companies (NAIC) and by the New America Alliance (NAA), an organization of American Latino business leaders. The Fund has made more than $826 million in private equity commitments to women- and minority-owned firms. This includes $190 million in commitments to five African-American-owned private equity emerging manager firms: ICV Capital Partners; Pharos Capital Group LLC; Syncom Venture Partners; Ascend Ventures; and Vista Equity. It also includes $115 million in commitments to four Latino-owned emerging manager firms: Bastion Capital; Palladium Equity Partners LLC; Nogales Investors Management LLC and RC Fontis Partners.