New Jersey chooses TorreyCove as private equity consultant

The New Jersey Division of Investment will use a new private equity consultant going forward.

The state has hired TorreyCove Capital Partners for the next five years as the state pension system’s private equity consultant, as well as the performance measurement consultant. TorreyCove replaces previous private equity consultant Strategic Investment Solutions.

The contract runs for five years at a total cost of $4.26 million, according to Chris Santarelli, spokesman for the state treasury department.

TorreyCove starts in the role on July 1. It’s not clear how long SIS worked with New Jersey.

The private equity consultant performs traditional gatekeeper-like duties of vetting and selecting appropriate funds, along with monitoring the portfolio.

The performance measurement consultant duties include helping the system track performance of the portfolio based on monthly cash flows and including information on underlying investments in each fund, according to the state’s request for proposal published last year.

The state’s private equity program, including unfunded commitments, had a total value of about $14.2 billion as of April, according to an investment report from the system. The system had total asset of almost $80 billion as of April 30.

TorreyCove has expanded over the past few years. Last year the firm, led by David Fann, was awarded a-one year contract as private equity consultant for the New York State Teachers’ Retirement System. It’s not clear if that contract has been renewed.

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