NYC SEEKS MANAGERS TO IMPLEMENT DISCRETIONARY MANDATE 

New York City Comptroller William C. Thompson, Jr., on behalf of the New York City Retirement Systems, today issued a request for qualifications (RFQ) targeting discretionary managers to invest up to $175 million in emerging private equity funds. Thompson and the Retirement Systems hope to take advantage of the market opportunity presented by small, first-time funds, particularly those owned by women or members of minority groups.

"The New York City Retirement Systems seek only the most qualified managers to implement this important initiative," Thompson said. "We plan not only to maximize our risk-adjusted return, but to use this opportunity to invest prudently in small, first-time funds, particularly those operated by women and members of minority groups."

Thompson is seeking managers for one or more funds-of-funds or discretionary vehicles - vehicles established to invest on the Systems' behalf in emerging private equity funds.

Emerging private equity funds are private equity limited partnerships raising first-time funds with target sizes of $200 million or less. Their investment strategies may include targeting underserved markets for capital, goods or services through such conventional private equity strategies as buyouts, venture capital, mezzanine finance and secondary interests.

As stated in the RFQ, the goals of this initiative include:

• Maximizing the risk-adjusted return on capital invested;
• Taking advantage of the market opportunity presented by small, first-time funds, particularly those owned and operated by women or members of minority groups, seeking to raise institutional capital to invest through private equity limited partnerships; and,
•   Using niche strategies to achieve value unavailable to investors pursuing broader strategies.

The Comptroller's RFQ invites interested parties to submit a brief description of their qualifications to manage a vehicle created for the purpose of investing in emerging private equity funds. Each submission will be evaluated based on the following criteria:

• Track record;
• Understanding of and commitment to the market opportunity presented by small, first-time funds, particularly those principally owned and operated by women and members of minority groups, seeking to raise institutional capital to invest through private equity limited partnerships;
• Network of contacts;
• Demonstrated experience and skills necessary to execute the proposed strategy;
• Organizational strength, capacity and stability;
• Character, reputation and integrity of firm as well as of other investors in vehicles managed by the firm;
• Nature and quality of value-added involvement by the firm;
• Pre-existing commitments of general partner;
• Basic economic terms of the investment, including financial commitment of the firm, preferred return and proposed split of carry;
• Alignment of firm's interests with those of the Systems; and,
• Alignment of employee interests with those of principals of the firm.

The systems participating in the RFQ are: the New York City Employees' Retirement System, the Teachers' Retirement System of New York City, the New York City Police Pension Fund, and the New York City Fire Department Pension Fund.

Besides Thompson, the other trustees of the New York City Employees' Retirement System are: Martha Stark, Chair, New York City Commissioner of Finance; Betsy Gotbaum, Public Advocate; C.Virginia Fields, Manhattan Borough President; Marty Markowitz, Brooklyn Borough President; Adolfo Carrion, Bronx Borough President; Helen Marshall, Queens Borough President; James Molinaro, Staten Island Borough President; Carl Haynes, Local 237, International Brotherhood of Teamsters; Lillian Roberts, District Council 37; and Roger Toussaint, Transport Workers Union Local 100.

The other trustees of the New York City Teachers' Retirement System are: Commissioner Stark; Kathleen Grimm, New York City Department of Education; Phillip Berry, Colgate Palmolive Inc.; and Sandra March, Melvyn Aaronson, and Mona Romain, all of the United Federation of Teachers.

In addition to Thompson, the other trustees of the New York City Police Pension Fund are: Mayor Michael Bloomberg; Raymond Kelly, Chair, New York City Police Commissioner; Commissioner Stark; Patrick Lynch, Police Benevolent Association; Mubarak Abdul-Jabar, Police Benevolent Association; Scott Williamson, Chair of the Board of Trustees, Police Benevolent Association; Thomas Scotto, Detectives Endowment Association; Edwin Mullins, Sergeants Benevolent Association; Anthony Garvey, Lieutenants Benevolent Association; and John Driscoll, Captains Endowment Association.

Thompson is joined on the New York City Fire Pension Fund by: Mayor Bloomberg; Fire Commissioner Nicholas Scoppetta; Commissioner Stark; Stephen Cassidy, James Slevin, Kevin McAdams and Robert Straub, Chairman of the Board of Trustees, all of the Uniformed Firefighter's Association of Greater New York; Peter L. Gorman, Uniformed Fire Officers Association; Stephen J. Carbone, Uniformed Fire Officers Association; Joseph Gagliardi, Marine Engineers Association; Christine Lee, Bureau of Health Services; Magda Deconinck, Office of the Corporation Counsel; Thomas P. Reynolds, Reynolds Securities, Ltd.; and Robert C. North, Jr., Office of the Actuary.

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