Indiana pension seeks manager for in-state fund

The $25.6bn pension is expected to select a single manager to run a $150m customised account focused on Indiana by the end of October.

The Indiana Public Retirement System is looking for a private equity manager to run a separate account programme focused on Indiana-related general partners and direct investments.

The customised fund size is anticipated to be $150 million, according to pension documents, with a third of the capital to be invested in general partners either located in Indiana or that have “significant nexus of activity with Indiana”. The remaining two-thirds of the fund will be invested in direct investments and co-investments either in Indiana-based businesses or companies that are active in the state.

The fund manager will also be charged with managing several existing pools of capital on behalf of the $25.6 billion pension – Indiana Future Fund I, Indiana Investment Fund, Indiana Investment Fund-A, Credit Suisse/Indiana Venture Fund, Indiana Co-Investment Fund and iNext Fund – as well as all related co-investments.

Proposals are due by 12 October. A single manager is expected to be chosen by the end of the month.

Indiana has a 13.3 percent allocation to private equity, as of 30 June. The retirement system was officially established in July 2011 through the merger of the administration of funds of the Indiana Public Employees' Retirement Fund and Indiana State Teachers' Retirement Fund.

The request for proposal comes roughly one month after the California Public Employees’ Retirement System disclosed in documents it would be winding down its in-state private equity investment programme over the next five years. August meeting materials for the $236.8 billion retirement system indicated that The California Initiative had failed to meet CalPERS’ investment return expectations since its launch in 2001.