Tennessee hires Cambridge for private equity

Cambridge Associates will advise the $30bn pension on its fledgling $169m private equity portfolio, which was launched last fall.

The Tennessee Consolidated Retirement System, a $30 billion pension, has hired Cambridge Associates as the consultant to its young private equity programme, which made its first commitment last fall.

The pension’s first private equity consultant was Strategic Investment Solutions.

Tennessee’s private equity programme, valued at about $169 million, has a target of 3 percent, or about $890 million in current fund dollars. About $300 million of that amount has been committed.

Earlier this year, Tennessee committed $40 million each to Oaktree Opportunities funds VIII and VIIIb. In March, the pension committed $50 million to Oaktree Capital Management’s Public Private Investment Program fund. The commitment was Tennessee’s fifth private equity investment since the pension’s programme began in August 2009.

Tennessee has also committed to TA Associates, Hellman & Friedman, Khosla Ventures and Draper Fisher Jurvetson.

Tennessee’s state legislature authorised the pension to invest up to 5 percent of its assets in private equity in 2008.

Cambridge provides consulting services to more than 800 clients globally. The company is known for its work with endowments, but it also works with pensions.