Indiana hires Carlyle to run in-state private equity(2)

The Indiana Public Retirement System had been searching for a manager for the $150m programme that will invest in funds and companies that have extensive business in the state.

The Indiana Public Retirement System has hired The Carlyle Group to manage a $150 million in-state private equity investment fund, according to a statement from the firm.

Specifically, Carlyle affiliate AlpInvest Partners will manage the fund, which will invest in Indiana-based direct investments, co-investments and fund commitments, the statement said. Carlyle has opened an office in Indianapolis to serve as a “base of operations”. The fund will invest in private equity funds, real assets and credit investments, and directly invest or co-invest in companies through equity, debt or mezzanine strategies, the statement said.

“We are … excited to expand the relationships that we’ve fostered for the past 10 years with Indiana’s pension system,” Carlyle co-chief executive officer David Rubenstein said in the statement. “We believe that Carlyle and AlpInvest form a powerful investment platform that will work well for Indiana’s public pensioners.”

Indiana’s goal in launching the programme was to target “premium rates of returns while nurturing Hoosier entrepreneurs and their businesses”, according to Steve Russo, executive director of the retirement system.

The fund will make fund commitments to managers and companies for direct and/or co-investments, and focus on opportunities either located in Indiana or that have meaningful connection to the state. “Regional funds and companies will be considered provided that they have a willingness to move a significant part or all of their operations to Indiana,” Carlyle’s statement said.

Indiana had been looking for a manager to run the in-state programme since last year. The retirement system, which was created in 2011 by merging several different retirement funds, including the biggest – the public employees’ and the teachers’ pension funds.

The system’s private equity programme was led by Bob Clone until October, when Clone left for undisclosed reasons. Indiana appointed Bo Ramsey as director of private equity in December. As of 30 June, 2012, Indiana Public Retirement System had a 13.3 percent allocation to private equity.