North Carolina’s $90 billion pension fund is planning to hire “small and emerging” money management firms to handle $200 million in private equity investments.
The initiative, announced Tuesday by Treasurer Janet Cowell, will focus mostly on minority and woman-owned firms and smaller firms with less than $750 million under management.
The new program is a companion to a $300 million initiative, dating back to 2013, to hire small and emerging investment firms to handle public equity investments.
“The first program focusing on public equity has been successful,” Cowell said in a prepared statement. “Expanding the program to private equity allows us to capture higher returns that will benefit pensioners while tapping new talent.”
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The new program will be managed by Neuberger Berman, a New York firm that manages $251 billion in assets.
The $200 million will be allocated to various investment strategies, including buyout funds and venture capital.
The state pension fund provides retirement benefits for more than 900,000 North Carolinians, including teachers, state employees, firefighters and police officers.