Jim Treanor spent 11 years building a $10 billion portfolio for the Florida State Board of Administration, as the chief of its private equity programme. Then he left.
Hard to argue
“Having more, let’s say, performance-oriented compensation would be very helpful … But I think it’s tough to address given some of the fiscal challenges where these funds operate and their governance models,” says former Ontario Teachers’ Pension Plan private equity head Erol Uzumeri, who left the Canadian pension plan in 2010 to launch Searchlight Capital Partners.
Worth the risks?
Orange County does not seem to be following that trend, however. After managing the plan through the downturn, Delaney said he felt comfortable approaching the board on the issue. The move was also prompted by the staff’s recent exploration of doing direct hedge fund investments (it plans to explore similar direct strategies for private equity in the future).
It’s clear that for the likes of SBA and OCERS, these constraints no longer seem particularly wise. n