Presbyterian Foundation wants more private equity

The more than 200-year-old organisation has hired Cambridge Associates as an outsourced CIO to help with due diligence of managers, selection of managers and portfolio rebalancing.

The Presbyterian Foundation, a corporation that handles the financial interest of the Presbyterian Church, plans on hiking its allocation to private equity.

The Foundation, which has about $1 billion in assets, has hired Cambridge Associates as an outsourced chief investment officer. Cambridge will work with the Foundation across asset classes, including private equity and real estate.

The Foundation’s relatively young programme was founded in 1799 and has been investing in private equity since 2006. The Foundation has a 4 percent allocation to the asset class, and “that will be changing, in terms of increased exposure to private equity”, a spokesperson for the Foundation told Private Equity International.

“The asset class itself has done well, if you can source top tier managers. That can make a large difference in returns,” the spokesperson said.

Cambridge will work with the Foundation’s board of trustees’ investment committee on choosing managers and perform due diligence and portfolio rebalancing, the spokesperson said.

As of March 2011, the Foundation had about $19 million in private equity holdings and $3.9 million in real estate investments, according to the annual report.