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Connecticut Retirement selects StepStone as PE adviser

The pension fund is committing $85 million to ArcLight.

Connecticut Retirement Plans and Trust Funds (CRPTF) has selected StepStone Group as its new private equity investment consultant, according to a statement.

StepStone will start advising the $30 billion pension fund on its Private Investment Fund from October, replacing its decade-long private equity adviser Franklin Park Associates. The firm was picked from a group of nine through a process that began eight months ago. StepStone advises on private equity, credit, infrastructure and real assets.

Connecticut Treasurer Denise Nappier said: “As globalisation becomes increasingly important to successful investment strategies, StepStone’s worldwide footprint and responsible investment experience will bring added value to its proven track record, and is expected to enhance the PIF’s investment returns.”

On the same day, CRPTF confirmed it was moving forward with an $85 million commitment from its Alternative Investment Fund  to the ArcLight Energy Partners Fund VI, a fund managed by Boston’s energy-focused ArcLight Capital Partners. The announcement was made after an investment advisory council meeting on 9 July.

CRPTF’s commitment to ArcLight’s sixth fund follows its investment in ArcLight Energy Partners Fund V, which has posted a net internal rate of return (IRR) of 12 percent through 31 March.

The general partners of ArcLight VI have secured $4.7 billion in commitments to date for their latest energy fund, according to Securities & Exchange Commission data.

Additionally, the state pension manager is considering a $75 million commitment to Clearlake Capital Partners IV, which invests in special situations, distressed and value investments. It is managed by Clearlake Capital Group. CRPTF provided $40 million to the firm’s 2012 vintage Clearlake Capital Partners III fund, which generated a net IRR of 23.7 percent through December 2014.