Manager searches galore, and more...

The State Universities Retirement System (SURS) of Illinois has begun soliciting proposals for long-only multi-sector public credit strategies for a mandate range of $250M to $500M. 

Illinois SURS will accept both US and global strategies, especially those focused on investment grade, high yield, and emerging market debt sub-sectors, but will not consider strategies which include private credit. More than one manager may be selected, with any selected managers included in the pension’s stabilized growth portfolio. 

The pension will receive responses until March 19 at 4:30 p.m. Central time, with the finalist selection tentatively scheduled for the June 5 board meeting. Meketa is assisting Illinois SURS in the search. 

The Louisiana State Employees Retirement System (LASERS) approved commitments totalling $250M to two private equity funds and has narrowed its global multi-sector credit manager search to three candidates.

Recently published minutes from its December 12, 2024, board meeting disclosed that the pension allocated $100M to middle-market buyout EQT BPEA Private Equity Fund IX and $125M to a HarbourVest Custom Co-Investment, following presentations by the fund managers. Per Dakota data, LASERS has a previous relationship with HarbourVest Partners as it previously committed $1.7M in total to HarbourVest Partners VI Direct and Partnership funds.

Meanwhile, the pension also approved the selection of Bayview Asset Management, Irradiant Partners, and Orchard Global as finalists in its global multi-sector credit search. Staff and general consultant NEPC recommended the candidates and assisted in the discussion for the search. 

As of the latest Dakota data, LASERS administers approximately $15.6B in total plan assets.

The Laborers’ & Retirement Board Employees’ Annuity & Benefit Fund of Chicago has issued an RFP seeking international developed markets small cap equity managers for a potential mandate of up to $30M. 

The pension said qualified firms should have at least five years of investment experience, with a verifiable performance record, in the asset class. Proposals are due on March 7 at 4 p.m. Central time, and questions will be entertained until February 7. The interview and selection dates are yet to be determined. 

General consultant Marquette is assisting the $1.1B pension in the manager search.

The West Palm Beach Police Pension Fund made $22M in total allocations to two funds in private equity and real estate, as disclosed in its recently published January 17 board meeting minutes.

In unanimous board approvals, the police pension committed $12M to private equity fund of funds Taurus Private Markets III and $10M to real estate value-add fund Affiliated Housing Impact II. Of the two allocations, the pension’s Taurus Fund III commitment represents a follow-on to its $12M investment in predecessor Fund II in 2024, per Dakota data. 

General consultant Mariner assisted in the investment discussion for West Palm Beach Police, which manages approximately $440M in aggregate pension assets as of the latest Dakota data.

The Lancaster County Employees Retirement Fund has selected Marquette Associates as its new OCIO manager for a three-year term starting in January, per recently published minutes from the pension’s November 8, 2024, board meeting.

Lancaster County said it received four responses to its actuarial services RFP, which were forwarded to the board for a vote. The pension unanimously approved the hiring of Marquette based on “vast experience, pricing, and client references.” 

To date, the Pennsylvania-based county pension administers a total portfolio valued at approximately $400M, per the latest Dakota data.

The Charlotte Firefighters’ Retirement System has terminated Morgan Stanley and hired Westwood Global Investments as investment manager, while also reviewing two strategies from its domestic equity portfolio. 

According to its recently published January 16 board meeting minutes, the North Carolina-based pension unanimously approved Morgan Stanley’s termination while concurrently selecting Westwood in the conclusion of the pension’s investment manager search. Acadian and Victory Capital were also interviewed and presented at the board session during the selection process. 

Additionally, Charlotte Firefighters conducted performance reviews of Boston Partners Mid-Cap Value and MFS Mid-Cap Growth within its domestic equity portfolio. The pension noted the Boston Partners fund reportedly trailed its benchmark by 2.5%, the fund’s first underperformance since its inception in 1998. MFS Mid-Cap also underperformed on relative performance to the benchmark but generated “strong absolute return” with a 14% increase in the portfolio’s value. 

Saudi pension Hassana Investment Company has announced that Saad Alfadly will be stepping down as CEO, effective July 1 after a 12-year tenure.

Alfadly joined Hassana in 2013 and has over 25 years of experience in the industry, including serving senior leadership roles in NCB Capital, Morgan Stanley Saudi Arabia, and the Saudi Central Bank. He has been a member of the pension’s board of directors since 2023, and will retain his seat after leaving the chief executive position. Hassana is yet to make an announcement regarding a successor. 

As of the latest Dakota data, Hassana oversees a $320B portfolio as investment manager of Saudi’s General Organization for Social Insurance. 

Rise Growth Partners announced that it has made a strategic minority investment in family-owned RIA Grimes & Company, headquartered in Westborough, MA, and managing $5.7B in client assets.

Grimes & Company was founded in 1985 by Timothy Grimes and is now led by his son Kevin. The firm serves 3,000 households across offices in Massachusetts, Texas, Florida, and Nebraska. The partnership with Rise aims to aid the firm with its geographic expansion and further refine its centralized planning process and attract growth-focused advisor teams and firms.

Rise Growth Partners received a $250M investment from Charlesbank Capital Partners in February 2024 to back its strategy of investing in growth-oriented RIAs. The strategic investment in Grimes is Rise Growth Partners’ second, following its August 2024 investment in Parsipanny, NJ-based Bleakley Financial Group, which reported nearly $9.2B in regulatory AUM in its most recent Form ADV filing.

Vestavia, AL-based RFG Advisory announced the launch of Strodtman Wealth Management, founded by former Edelman advisor Patrick Strodtman, expanding the firm’s presence in the Dallas-Fort Worth market.

Based in Flower Mound, TX, Strodtman Wealth Management aims to provide concierge-level financial advisory services and bespoke investment portfolios. Strodtman established the firm after his four-year stint at Edelman. He has 10 years of experience in the industry, including prior stints with Empower Retirement and Fidelity Investments.

Strodtman Wealth Management is the fifth Texas-based firm under the RFG Advisory banner and follows the launches of TrekNorth Investment Management in Colorado and Matterhorn Private Wealth in New York earlier this month.

Forza Wealth Management, a fee-only RIA based in Sarasota, FL, announced that veteran portfolio manager Diane Huntley will lead the firm’s investment advisory board.

In her new role, Huntley will be responsible for the firm’s decision-making process, providing strategic insights and overseeing Forza’s long-term investment strategies. She has more than three decades of portfolio management experience, including 21 years managing investment advisory, trust, and foundation accounts. Before joining Forza, Huntley had been a senior vice president and portfolio manager with Bank of America’s private bank since 2011.

Tikehau Capital's Special Opportunities Fund III (TSO III) closed oversubscribed at €1.2B (~$1.25B) against a target of €1B (~$1.04B) and nearly doubled the €617M raised for the alternative asset management group’s previous vantage.

The fundraising includes commitments from a diverse group of global investors, including pension funds, insurers, family offices and sovereign wealth funds. The latest fund follows a flexible investment mandate and is 55% deployed, providing corporate and asset-backed credit solutions in European primary and secondary markets. Since its 2023 launch, TSO III has built a portfolio of 13 companies with one successful exit completed.

This fundraise bolsters Tikehau Capital's credit strategy, which manages €21.7B (~$22.64B) in assets, representing 46% of the group's total AUM. In 2023, the firm deployed €3.8B (~$3.96B) across its credit portfolio, investing in over 100 companies.

MLG Capital is aiming to raise $400M for its largest real estate fund to date with the launch of MLG Private Fund VII.

The fund will pursue a diversified investment strategy across multiple asset classes, aiming for an 8% rate of return to investors and a $1.15B asset value through more than 25 investments across various property types.

MLG Capital will deploy a dual-sourcing strategy for acquisitions and maintain an investor-centric fund structure. The firm is marketing Fund VII to accredited investors, including high-net-worth individuals, family offices and RIAs, while it continues to promote its evergreen Legacy Fund.

MLG Private Fund VI, its predecessor that also initially targeted $400M, became the real estate investor's largest fund when it closed at $384M in January, indicating consistent investor interest in MLG Capital's offerings.

VWH Capital Management filed with the SEC for three new funds, indicating the impending launch of a new round of fundraising.

The Dallas-based RIA and private equity firm notified the SEC of VWH Master Fund IV, VWH Partners IV and VWH Offshore Fund IV in separate February 14 filings. All three funds will be marketed across the US with the assistance of PJT Partners and OCP Capital, with $20M allocated for sales commissions for the main fund and companion vehicles. The fundraising is expected to last more than a year.

VWH Capital is a minority and women-owned business focused on securitized products, distressed credit and whole loans. In 2022, it notified the SEC of raising $1.13B for VWH Master Fund III, $310M for VWH Partners III, and $819.2M for VWH Offshore Fund III.

According to Dakota data, public pensions investing in prior VWH funds include the Ventura County Employees' Retirement Association, City of Hartford Municipal Employees Retirement Fund and the Employees' Retirement System of Texas.

Since its first fund launch in 2017, VWH Capital has amassed $4B of AUM and $3.1B of assets under securitization.

Home equity fintech and investment platform Nada launched what it claims to be a first-of-its kind fund providing professional and wealthy investors with direct exposure to the $35T US home equity market. 

The firm is making U.S. Home Equity Fund I (US HEF) available to investors through its new Homeshares platform, where they can access a diversified portfolio of home equity agreements (HEA). US HEF aims to deliver a net interest rate of return in the 14% to 17% range by capitalizing on the near tripling of US home equity since 2013 and the increasing institutional adoption of HEAs by banks, insurers, and private credit funds.

In a statement announcing the new fund, Nada founder and COO John Green characterized HEAs as “one of the most exciting new asset classes in real estate.” Nada said the new fund will open up the home equity market to more than just institutions, paving the way for participation by qualified accredited investors, family offices, private wealth groups, and alternative asset managers. 

Third Wire Asset Management unveiled on February 18 a new fund that offers institutional and accredited investors direct exposure to the freshly launched Morningstar PitchBook Buyout Replication Index.

The Third Wire / Morningstar PitchBook US Buyout Replication Index Fund will invest in constituents of the index, which are publicly traded small- and mid-cap stocks that resemble companies in private equity buyout funds. With a minimum investment of $1M, the fund is tailored for advisors and family offices, providing dedicated support throughout the investment process. 

The investment vehicle will have a risk/return profile similar to buyout funds with the transparency of public markets. It will execute monthly redemptions and provide daily valuation updates. Notably, the fund charges a flat 1.5% management fee and does not charge performance fees. 

Piper Sandler Companies announced the appointment of Ahsan Khan as managing director and Jonathan Hartland and Andrew Fair as directors to its private capital advisory investment banking group, expanding its GP advisory and distribution capabilities in the Middle East, Europe, and North America.

In a statement, Piper Sandler's head of private capital advisory Ryan Schlitt said that expanding the firm's footprint in the EMEA is a key strategic priority and the new hires will enable it to better execute complex fundraising mandates and broaden its reach among GPs and investors in the region.

As managing director, Khan will serve as the head of relationship management in the Middle East as well as the firm’s senior relationship manager in Europe, according to his LinkedIn profile. Prior to joining Piper Sandler, he spent more than six years at Asante Capital Group as the head of Middle East and European coverage.

Hartland will serve as the firm’s head of European private markets and private funds advisory. He joins from Rede Partners before, where his responsibilities included inter-fundraise investment development projects and LP surveys.

Fair joins Piper Sandler private capital advisory from Connaught, where he co-led the North American office, focusing on origination and underwriting of new GP client relationships. Before that, he was a placement agent with Mercury Capital Advisors, focusing on private equity, private credit, and real assets. Schlitt noted that the Northeast US is a key region for capital raising and that Fair’s extensive experience engaging with institutional investors in the region will be beneficial to the firm in expanding its LP relationships.

Polen Capital announced that it has received its Financial Services Permission (FSP) to operate in the Abu Dhabi Global Market (ADGM), appointing Omar Sultani as managing director.

In a statement, Polen Capital CEO Stan Moss said that the firm is set to expand its footprint and accelerate its next growth phase by tapping into the region's financial dynamism and investor base. The firm received an initial approval to open an office in the ADGM last December. 

Sultani was appointed as managing director and head of Middle East and Central Asia, operating in Dubai in 2024, as per his LinkedIn profile. Prior to joining the firm, he was the head of asset management at Fisher Investments Arabia.