NAIC Members Meet with Maryland LPs in Road Show

The National Association of Investment Companies (NAIC) Road Show stopped in Maryland where 14 members met with six institutional investors and one advisory firm. Among the institutions represented were: Maryland State Retirement and Pension System, which manages approximately $46 billion, with an 11% allocation to private equity (current NAV of $4.3 billion or 9.3%); Pavilion Alternatives Group, which has 46 clients, including several large public pension plans; Brown Advisory, which was spun out of Alex Brown and has $57 billion in assets under management; American Trading and Production Corporation, a $1 billion family office; Baltimore City Fire & Police, which currently has $2.5 billion in assets under management; District of Columbia Retirement Board, which has a $6.5 billion investment portfolio; and the Annie E. Casey Foundation, which has $2.5 billion in assets under management with a 25% allocation to private capital.

LPs, Policymakers Gather for NAIC Annual Private Equity & Hedge Fund Conference

In case you missed it, nearly 300 investment managers, chief investment officers, limited partners, policymakers gathered for the NAIC Private Equity & Hedge Fund Conference, the premier thought leadership event in alternative asset investing. Session topics included insight into the strategies of CIOs, how the new presidential administration will impact diverse managers and the opportunities and challenges with doing business with labor unions. A video recap of the event is now available online. Please join us for next year's Private Equity & Hedge Fund Conference for more insight, access to limited partners, and networking with industry insiders!

Compliance Corner: High Integrity Matters

Despite increased regulation, public pressure and media scrutiny, a recent survey of the US and UK financial services industries shows that unethical behavior within the highly competitive field is alive and well. The report states that despite legal and regulatory sanctions coming out on almost a daily basis, the industry has a long way to go to regain the confidence of the public. In this installment of Compliance Corner, we look at how firms can build a culture and an organization that encourages integrity in all its employees by celebrating compliance and ethics.

NAIC Members in the News

RLJ Equity Partners to Sell Interest in MarketCast, LLC

Kohlberg & Company has entered a definitive agreement to acquire the ownership interest in MarketCast, LLC held by RLJ Equity Partners and State Street Global Advisors. MarketCast is a provider of information and data analytics to marketers and researchers in the entertainment industry. RLJ and State Street acquired MarketCast in December 2014 from Shamrock Capital Advisors. The transaction is expected to close in November 2016. Terms of the agreement were not disclosed.

One Rock Capital Portfolio Company Acquires Chevron Assets

Island Energy Services, LLC, an entity controlled by One Rock Capital Partners, LP, completed its acquisition of Chevron U.S.A. Inc.'s refining, distribution and retail assets located in Hawaii. The acquired assets include the refinery in Kapolei, four product distribution terminals on Oahu, Maui, Kauai and Hawaii Island, pipeline distribution systems and other related downstream assets in Hawaii. In addition, the network of Chevron-branded gas stations in the Islands will be converted to Chevron's Texaco brand over the next year.

Industry News

PA Treasury Announces $100 Million Impact Investing Initiative

Pennsylvania Treasurer Timothy A. Reese announced the launch of a $100 million impact investment initiative that will provide the "double-bottom line" benefit of providing a competitive rate of return while supporting state investments in affordable housing, small business, health and educational facilities, and infrastructure projects. Treasury will invest the funds through RBC Global Asset Management's (RBC GAM) Access Capital Community Investment Strategy which will design a portfolio of high-quality, securitized, fixed-income investments in Pennsylvania projects.

Two New Industry Studies Highlight Diverse Managers

Two recent studies have been published that highlight the current state of diverse managers. Casting a Wider Net: Increasing Opportunities for Minority and Women Owned Asset Managers in Institutional Investments a 2016 report that report explores the causes (which include the lack of diversity at major consulting firms and lack of systems in place to track, identify and endorse minority and emerging asset managers) as well as recommended solutions. Measuring the Representation of Women and Minorities in the SBIC Program is a report that addresses questions comparing the diversity and performance of SBICs with the broader VC and PE community, and asks whether diverse SBICs are more likely to invest in diverse portfolio companies or in low- and moderate.