StepStone replaces Hamilton Lane in Wisconsin

The Wisconsin state investment board, which manages $78bn in assets, has awarded StepStone a three year contract for private equity consulting services for $600,000 a year.

The StepStone Group is replacing Hamilton Lane as the private equity consultant for Wisconsin’s state investment board, which oversees $78 billion in assets.

The state board awarded StepStone the three-year contract in October, a pension spokesperson told PEO. The contract will cost $600,000 per year.

“We hired the best firm based on our needs,” the spokesperson told PEO.

StepStone has worked with Wisconsin since 2007, when the pension board hired the La Jolla, California-based firm as a supplemental private equity consultant to assist investment staff with due diligence. The board expanded StepStone’s duties in May to include reviews of co-investment opportunities. And in August, StepStone was hired through a competitive process to provide private equity portfolio monitoring and reporting services for three years.

In its role as the main private equity consultant, StepStone will assist investment staff in tracking the pension’s private equity investments and related market changes, record daily transactions and provide portfolio analysis reports on a quarterly and annual basis, the spokesperson said. Hamilton Lane worked as the pension’s private equity consultant since 2004.

Earlier this month, the $76 billion New York State Teachers' Retirement System renewed its contract with StepStone for private equity consulting services.

Wisconsin has made $185 million in private equity commitments since July, according to an investment report at the pension board meeting this week. Wisconsin committed $50 million to Inflexion 2010 Buyout Fund, which closed in September on £375 million; $30 million to JMI Fund VII, which launched in June; and $75 million to Sheridan Production Partners II, a Warburg Pincus joint venture that focuses on investments in oil and gas producing properties. Sheridan is targeting $1.3 billion.

Wisconsin also committed $30 million to Avalon Ventures IX, targeting $200 million. The fund has already collected about $118 million, according to a filing with the US Securities and Exchange Commission.