South Carolina seeks new investment consultant

The $26bn retirement system also made a pair of commitments, totaling around $80m, to Leonard Green’s sixth fund and BC Partners’ ninth European capital fund.

The South Carolina Retirement System Investment Commission will issue a request for proposal for a new investment consultant in the coming weeks, spokesman Adam Jordan told Private Equity International. The RFP is expected to be posted in the coming weeks.

The system’s contract with its current consultant, New England Pension Consultants, expires next year. NEPC will be able to apply for a new contract under the RFP.

NEPC provides consulting services to retirement and pension systems for traditional and alternative investment strategies. In addition to South Carolina, NEPC also advises the Chicago Policemen’s Annuity and Benefit Fund, the Louisiana State Employees Retirement System, the New Mexico State Investment Council and the New York City Employees’ Retirement System, among others, according to data provider Private Equity Connect.

In addition to announcing the search for a new consultant, the $26 billion retirement system also made a pair of commitments to two private equity funds, $40 million to Leonard Green & Partners’ sixth Green Investors Fund and €30 million to BC European Capital Partners IX. South Carolina also made a “preliminary commitment” of $20 million to Nexus Medical Partners, contingent on further due diligence reporting from state staff, Jordan said.

Earlier this year, South Carolina established a $750 million strategic partnership with TCW spin-out Crescent Capital Group. The separately managed account will invest in credit strategies. South Carolina has four other strategic partnerships of various sizes with Goldman Sachs, Mariner Investment Group, Morgan Stanley and TCW, all of which were established in 2008, according to the system's 2010 annual report. The strategic partnerships invest in private equity, opportunistic credit, real estate, direct co-investments, real assets and absolute return strategies.