Investor Base: Double trouble

In October, Lawrence Schloss, the chief investment officer for the New York City Retirement System, was named president of private investment firm Angelo Gordon, a new position. He left NYCERS on 18 October, and will begin his new role at Angelo Gordon on 11 November.

Schloss had been CIO at New York City since January 2010 and also acted as deputy comptroller. Prior to joining the system, he was co-founder and global head of Credit Suisse First Boston Private Equity.

He leaves an impressive legacy. “During Larry’s tenure as chief investment officer, the City’s pension funds grew by $45 billion to $145 billion, the largest increase recorded by any NYC CIO ever,” New York City comptroller John Liu said.

Seema Hingorani, NYCERS’ head of equities, will serve as interim CIO until 1 January. New York City’s next comptroller – the election for which takes place in November – will then name a new CIO, a spokesperson from the system told Private Equity International.

Schloss’s exit is the second high-profile departure from NYCERS in the last six months. In May, Barry Miller, its former head of private equity, stepped down to join secondary firm Landmark Partners, where he started as a partner in early June.

Miller had only stepped into the lead private equity role at NYCERS in 2011, having previously co-founded secondary firm Nottingham Capital Management. He worked under Schloss, who had actually been overseeing the private equity portfolio himself since his arrival in 2010 (before Miller joined, that job had been vacant since 2005).

Their partnership was certainly fruitful. During their time together, the team invested about $2.5 billion a year in private equity funds, with an emphasis on top-quartile managers, top emerging managers and building exposure to European funds, Schloss and Miller told Private Equity International in 2011.

They also made significant changes to the portfolio, selling off almost $1 billion worth of fund interests as a way to pare down their number of managers. This reduced NYCERS’ portfolio from 172 funds run by 108 GPs to 161 funds across 99 GPs. Total commitments fell from $13.7 billion to $12.7 billion.

Now both are gone. And on past form, it might take NYCERS a while to replace them.