Connecticut appoints Meketa general investment advisor

Once Meketa begins its 5-year contract in July, it will prepare to review Connecticut’s asset allocation, which currently includes an 11% target allocation to private equity.

The Connecticut Treasury Office hired Meketa Investment Group as the general investment advisor for the Connecticut Retirement Plans and Trust Funds (CRPTF), according to a statement from the limited partner on Wednesday.

CRPTF, which had 8.9 percent of its $31.5 billion portfolio in private equity as of 31 March, and Boston-based Meketa are at the negotiation stage to finalise the five-year contract, and the new advisor is expected to begin its services on 1 July.

Once Meketa begins the contract with Connecticut, it will start preparing for CRPTF’s asset allocation review, which occurs every five years, a spokesman for the Connecticut Treasury Office said. He added that this is a regular procedure set to happen later in 2017, although he did not specify a date.

At the last asset allocation review in 2012, the private equity target was set to 11 percent. It was unclear what the previous target number had been.

The Connecticut Treasury Office originally issued a request-for-proposal process on 10 June to receive submissions from potential candidates to replace its existing consultant, Chicago-based Aon Hewitt, with a deadline of 1 July.

The spokesman told Private Equity International Aon’s five-year contract was ending on 30 June 2017, prompting this search process. He added that the Treasury Office received five submissions, of which three – Meketa, Aon Hewitt and Seattle-based Verus Investments – were named the semi-finalists.

Meketa serves more than 150 clients who represent over $900 billion in assets altogether, as of 30 June.  Of those, it advises 41 public pension fund clients, the statement said.

Its appointment at the Connecticut Treasury Office follows its recent confirmation as the interim private equity consultant for the California Public Employees’ Retirement System, until June 2020, as reported by PEI. It had already been advising CalPERS on real assets investments.

According to documents from the Connecticut Treasury office obtained by PEI, Meketa’s first investment advisory client was the Harvard University endowment, which it has retained since 1978. They also showed Meketa’s total fee incurred by the Treasury Office will be $2.45 million for five years.

Meketa was not available to comment.