Orange County pension picks four secondaries advisers

Raymond James, Evercore, Jefferies and Campbell Lutyens are in the wings for the pension fund’s secondaries sales route.

In a move that signals LP apprehension amid sluggish exit activity, Orange County Employees Retirement System has named Raymond James, Evercore, Jefferies and Campbell Lutyens as advisers to have in reserve for potential future secondaries market activity, according to internal memos obtained by affiliate title Buyouts and Secondaries Investor.

Institutions such as OCERS will often build a reserve of advisers, colloquially called “spring-fed pools”, they can tap for future activity.

The selection of the four followed a Request For Proposal (RFP) and search process for secondary sale advisers launched by OCERS last August. As noted in one memo, the advisers will be on tap to be used “on an as-needed basis over a five-year term”.

Among the judging criteria that OCERS used to vet and select the final four were each firm’s background and experience, its overview of the secondaries sales process, typical staff size on standard transactions and examples of past deals and fee structures.

OCERS picked the secondaries sale advisers last January, with all four inking agreements in late March, said a memo.

The signing of these agreements ran concurrently with an OCERS meeting on 25 March in which the Santa Ana, California-based pension fund disclosed that it had made a total of $207.5 million in six new private equity commitments, as previously reported by Buyouts.

The commitments included $60 million for Clearlake Capital Partners VIII, $50 million to TPG Healthcare Partners II and $7.5 million to Vega Co-Invest managed by Hg.

At the time of the March meeting, Buyouts reported that OCERS, which was established nearly 80 years ago, had $21 billion in assets under management.

For its 29 May meeting, OCERS revealed a new batch of commitments, which included €15 million to ArchiMed MED Rise, $100 million to Bayview MSR Opportunity Fund, €25 million to FSN Capital Compass I and €7.5 million apiece to Cinven Pegasus and Frozen Investments Collective.

Asked for official confirmation of the hiring of the secondaries sale advisers, an OCERS representative referred Buyouts to one of the already reviewed internal memos dated 20 May, alluding to the selection of Raymond James, Evercore, Jefferies and Campbell Lutyens.