City of Fresno seeks PE exposure

The City of Fresno Retirement Systems is seeking a fund manager to construct a $120m private equity 'fund of one' which can include secondaries.

The City of Fresno Retirement System, which has around $3 billion in assets under management, is seeking an investment manager to help it move into private equity.

According to a request for proposals on the website of investment manager NEPC, the Californian defined benefit pension system wants to create a private equity “fund of one” with a global mandate, including the option to invest in secondaries funds.

The fund will receive $120 million over the course of three to four years, which could be increased if the programme proves successful, the request noted.

Candidates must have been in business for at least 10 years, have five years’ experience of managing private equity separate accounts and have a minimum of $1 billion in assets under management. Those involved in secondaries or funds of funds must specify their commitment or investment ranges, as well as the expected percentage of capital that will be invested in secondaries.

The deadline for submissions is 4 May.

The City of Fresno has a private equity target allocation of 4 percent, the request noted.

It discussed different approaches to gaining private equity exposure at its January board meeting and put a strategy in place the following month, according to an agenda document posted on its website.

Last week, New Mexico Educational Retirement Board set up a $100 million separate private equity account with Aberdeen Standard Investments. The fund will make primary, secondaries and co-investments in Europe, a spokesman for the pension confirmed.