'What happens if one of the managers decides to lay off 10% of staff of one of their investments? Can you imagine the headlines and pressure on us to step in and prevent that from happening,' says one board member.
Many LPs are focusing on re-ups with existing relationships due to the current economic landscape. LPs with dedicated programmes may serve as a valuable lifeline for emerging and diverse-owned managers.
The nation’s largest pension system’s emerging manager commitment flies in the face of many other public allocators that have emphasised re-ups with existing relationships.
Many states and regions lack the access to capital found in major metropolitan areas. In-state private equity programmes help bridge that gap while also providing returns for beneficiaries.