North Carolina Pension Will Launch $250 Million Sub-Fund to Invest Locally

north carolinaNorth Carolina Treasurer and pension trustee Janet Cowell announced on Wednesday the creation of a $250 million fund that will earmark pension assets for local investment.

According to a press release, two-thirds of the money will be designated for co-investments in state growth industries; one-third of the money will be put in venture, buyout and mezzanine investments.

More from the Charlotte Observer:

The new $250 million fund follows a $232 million North Carolina Innovation Fund started in 2010, which invests in private equity funds and companies with North Carolina ties. That fund has produced an internal rate of return of 20 percent, Cowell said.

A third-party firm, GCM Grosvenor, manages the $232 million fund through its office in Charlotte. Grosvenor became the manager after acquiring Customized Fund Investment Group from Credit Suisse last year. About $185 million of the fund has been committed to eight private equity managers and 12 companies. Investments in companies are made alongside other private equity managers.

Three Charlotte-based firms, Carousel Capital, Falfurrias Capital Partners and Frontier Capital, are among the investment managers that work with the fund. Credit Suisse/CFIG received $1.6 million in fees for managing the fund in fiscal 2012-2013, the latest year available, according to the state treasurer’s office.

The North Carolina Retirement System manages approximately $90 billion in assets.

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