NYC’s Blumenthal to launch private equity firm

Adam Blumenthal, first deputy comptroller of New York City’s pension funds, and a former vice chairman of American Capital Strategies, will leave public service to form a private equity firm.

Adam Blumenthal, first deputy comptroller and chief financial officer in the office of New York City Comptroller William C. Thompson, will resign to “form a private equity firm', the comptroller announced.

The press release gave no further information about Blumenthal’s plans.

Blumenthal led a drive at the comptroller’s office to build an alternative investment programme, including a significant allocation to private equity.

The New York City comptroller’s office advises on some $85 billion (€65 billion) in assets residing in five city pension funds.

Last year the funds approved a $4 billion allocation to private equity, managed to Josh Wolf-Powers, the comptroller’s managing director for private markets.

In December, New York City hired Deborah Gallegos, the former deputy state investment officer for New Mexico’s public pension, as chief investment officer. Gallegos, too, has been a big advocate for private equity.

Prior to joining the comptroller’s office in 2002, Blumenthal was vice chairman at Washington DC-based American Capital Strategies, a publicly traded mezzanine debt and equity investment firm.

Thompson’s office recently hired JP Morgan Investment Management and Fairview Capital Partners to administer a $175 million “emerging managers” programme for the city.