INPRS seeks consultants for carried interest calculation

Efforts by the Indiana pension will analyse costs associated with private equity, private debt and private real estate investing for the first time.

The Indiana Public Retirement System is looking to release its private investment cost data, including carried interest and other expenses, for the first time.

INPRS, which allocates 13.3 percent to private equity as of 30 June, launched a recruiting process earlier this month to hire an external consultant for what it titled “private equity fee data collection and validation services”.

The services involve calculating and confirming the costs incurred by the $29 billion pension fund in private equity, private credit and private real estate investments, including management fees, carried interest and other fund expenses, according to a request for proposal document on INPRS's website.

Across the three strategies, INPRS has a portfolio with a net asset value of about $5 billion and positions in about 275 funds, the document said. It added that the analysis would be done on a quarterly basis, and the contract will last five years, with possible renewals for a maximum contract period of 15 years total.

An INPRS spokeswoman told Private Equity International this would be the first time the Indianapolis-based pension fund reports private market investment cost data.

“This RFP was not triggered by ILPA [the Institutional Limited Partners Association],” she said. “We believe this RFP is the prudent next step for our organisation to remain vigilant about the fees we pay.” Her statement was referring to the standardised fee template created and released by ILPA last year in an effort to increase transparency and efficiency for investors, helping them better understand private equity investment costs. 

INPRS is accepting submissions until 7 April and aims to make its selection in May.

The process follows one that the Los Angeles County Employees' Retirement Association ran last year, after which it hired Kreischer Miller to calculate its private equity carried interest data retrospectively. As PEI reported earlier this month, LACERA is about halfway through its audit process and expects to release its carry data for the first time by June.