Former AIG Investments ready to back funds
PineBridge Investments, f.k.a. AIG Investments, is gearing up for life as an independent firm that manages funds-of-funds for AIG and other clients.
Steven Costabile, global head of the private funds group, does not yet know how much the firm will commit to private equity funds this year, though he says he’ll have a better idea within the next 45 days.
“We’re lining up and ready to go,” he says.
Subsectors of interest include debt strategies and small to mid-market buyout funds that take minority stakes in companies. The PineBridge funds-of-funds group oversees commitments to about 300 vehicles.
Last September, Bridge Partners, a subsidiary of Hong Kong buyout firm Pacific Century Group, agreed to purchase AIG Investments, the former asset management arm of insurance giant AIG, for about $500 million.
PineBridge Investments hopes to finalize its separation from AIG by the end of February, says CEO Win Neuger.
As of September 2009, PineBridge Investments had $88.7 billion of assets under management, with about one-third of that in alternative investments, most of which is private equity. It has more than 900 employees working in 32 countries. —Nancy Gordon
NY State pledges to Clearlake, DeltaPoint
The $126 billion New York State Common Retirement Fund recently announced two pledges made in November totaling $40 million, one to an emerging manager, another to a firm investing largely in the Northeast.
Clearlake Capital Group received a $15 million commitment for Clearlake Capital Partners II through the NYSCRF Pioneer Partnership Fund-A, part of the state pension fund’s emerging-manager program. This is a new relationship for the limited partner.
The LP also re-upped with DeltaPoint Capital Management through a $25 million pledge to DeltaPoint Capital IV, which is earmarked for buyout and growth equity investments throughout the Northeast. The commitment is part of an in-state private equity program. —Nancy Gordon
SF hires new PE head, sets PE pace for 2010
After searching the nation for a person to oversee its alternative and real estate asset classes, the San Francisco Employees’ Retirement System tapped someone from its own back yard.
Donald Holcher, a 27-year real estate industry veteran, had managed the pension fund’s real estate portfolio for the past 10 years. His new responsibilities now include assessing asset allocation; initiating new approaches in the two asset classes; recommending portfolio managers; and overseeing all externally managed separate and commingled accounts.
A priority for Holcher is committing between $225 million and $325 million to private equity in 2010.
The city pension fund focuses on select small and mid-market buyout funds, venture capital funds, special situations (distressed and secondary funds) and investments in Asia, according to spokesman Norm Nickens.
The city pension fund’s pledges typically range from $10 million to $40 million. In mid-March, the pension fund committed up to $25 million to the 11th fund of TA Associates and up to $15 million to TA Subordinated Debt Fund III. —Nancy Gordon