October 6, 2011
DiNapoli Announces Emerging Managers Program in Real Estate Asset Class
State Pension Fund Allocates $300 Million to Artemis Real Estate Partners
The $147.2 billion New York State Common Retirement Fund (Fund) has allocated $300 million to Artemis Real Estate Partners (Artemis) as its initial investment in a new emerging manager component of the Fund's real estate portfolio, State Comptroller Thomas P. DiNapoli announced today. With today's announcement, the Fund has completed the initiative Comptroller DiNapoli set forth when he took office in 2007 to launch an emerging managers program in each of the Fund's major asset classes.
"I am proud to announce the Fund's investment with Artemis Real Estate Partners to kick off our real estate asset class emerging managers program," DiNapoli said. "With the emerging manager program now in place across our asset classes, the Fund has affirmed its status as an innovator in the field and shown once again its commitment to enhancing diversity and opportunity while improving its bottom line. The Fund has a strong historic track record of developing relationships with successful financial managers of the future."
The Fund has formed a $300 million separate account real estate emerging manager program with Artemis. Artemis is a majority women-owned commercial real estate investment manager founded in 2009. The founders have invested over $25 billion during their professional careers across all property types throughout the United States.
"Artemis is honored to help the Fund implement its emerging manager initiative in the real estate asset class," said Deborah Harmon, CEO of Artemis. "We are excited to execute this strategic mandate to create joint venture partnerships with established and newly formed emerging managers. Our efforts will reflect Comptroller DiNapoli's commitment to identifying and increasing opportunities for these managers."
The objective of the real estate emerging manager vehicle is to provide the Fund with access to real estate joint venture operators that have less than $1 billion of equity capital under management. Using the separate account, Artemis will seek to deliver enhanced core returns by making and managing equity and debt investments with qualified emerging managers. The program will have sensitivity to Minority and Women Owned Business Enterprises (MWBE).
In 2007, Comptroller DiNapoli made a commitment to create emerging managers programs in each major asset class of the Fund, beginning with the private equity asset class. The Fund announced the selection of managers for that program in January 2009. The hedge fund emerging managers program was announced in June 2010. The Fund's emerging managers program in public equities began in 1994, preceded by a long-standing fixed income broker-dealer emerging managers program.
The Fund currently invests approximately $6.0 billion with emerging managers. The goal of the emerging managers program is to invest assets with smaller, newer funds and separate account managers, with a focus on MWBEs. Emerging managers invest in different structures and markets than larger firms and in so doing, provide diversification for the Fund's portfolio. The emerging managers program enhances the Fund's ability to partner and invest with experienced, but younger individuals and newer firms that are expected to graduate into large, institutional, best-in-class investment managers.