PBGC Puts Out Call for Asset Management Partners
A news release from the Pension Benefit Guaranty Corporation (PBGC) announced the agency had released a request for proposal (RFP) to form strategic partnerships with outside firms to help implement the new policy adopted by its Board earlier this year.
According to the announcement, about $5.5 billion is to be dedicated to private equity and real estate investments. Under the current RFP, the PBGC said it seeks two to three firms to manage $2 billion to $2.5 billion in these asset classes.
The successful firms must have global operations
and must have successfully managed private equity or real
estate allocations, as well as at least $1 billion in
strategic partnerships within the past three years.
The official solicitation, including full details on the
services required and instructions for submitting
proposals, appears on the U.S. Government’s FedBizOps
centralized procurement Web site:
www.fbo.gov
.
“As our investment portfolio has become increasingly
diversified, we are using more sophisticated techniques
to mitigate risk and safely enhance returns” said PBGC
Director Charles E.F. Millard, in the statement. “By
entering into strategic partnerships with firms that have
top-tier expertise in alternative investment classes, we
seek to build capacity to better oversee our portfolio.
PBGC already has a deep bench of experienced money
managers and financial advisers, and we expect the firms
selected under this RFP to beef up our roster of talent.
We also seek the deep consultative dialogue and other
services that world-class firms can provide in strategic
partnership.”
Through the strategic partnerships, the PBGC will
leverage the entire array of financial, quantitative and
qualitative resources of each firm including asset
management, consolidated performance reporting, risk
mitigation, staff training, and other resources that
bidders may propose, the PBCG said.
To assist in developing the RFP and evaluating proposals,
the PBGC has hired EnnisKnupp + Associates of Chicago,
which advises clients, including the Teacher Retirement
System of Texas, on strategic partnerships.
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