ERSRI, COAERS Issue Consultant RFPs | Chief Investment Officer

The Employees’ Retirement System of Rhode Island is searching for an investment consultant, while the City of Austin Employees’ Retirement System seeks a private markets consultant.

The Employees’ Retirement System of Rhode Island is accepting proposals for general investment consulting services and alternative investment consulting services, with the scope defined in a request for proposals posted on December 26. The deadline for respondents to submit questions is today, January 7, and responses are due on February 3.

ERSRI manages $11.5 billion for the state’s pooled trust defined benefit investment portfolio. The fund has 24,000 active members and 30,000 retirees. NEPC is currently the fund’s general investment consultant, while Cliffwater and Meketa serve as the fund’s alternative investment consultants.

“Respondents may submit proposals for a packaged combination of services, and/or any of the individual services,” the RFP states. “While the State will select only a single vendor to fulfill the role of General Investment Consultant, the State may select multiple vendors to assume nonoverlapping coverage of the Alternative Investment Consultant function.”

Contracts for consultants are for three years, with the possibility of a single one-year extension. The general investment consultant will advise on asset allocation, public equities, public fixed income and other liquid strategies, while the alternative investment consultant or consultants will advise on private equity and private credit, hedge funds, private infrastructure and real assets, and real estate.

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COAERS

In Texas, the City of Austin Employees’ Retirement System has also issued an RFP for a non-discretionary private markets investment consultant, as the fund plans to increase its allocation to private credit and equity. Responses are due by February 7.

Under a new strategic asset allocation adopted in late 2023, the Austin pension fund would increase the target weight of private credit to 10% of the portfolio from 0% and private equity to 8% from 0%. As of September 30, 2024, the fund had a 1.7% allocation to private credit, while private equity still had a 0% weight.

According to the RFP, COAERS plans to add private equity to the portfolio with the assistance of the private markets consultant. The fund, with $3.6 billion in assets, counts more than 11,000 Austin city employees and 7,800 retirees as beneficiaries. The fund returned 21.56% for the one-year period that ended September 30.

The contract period for the consultant is an initial three-year term and can be renewed for two additional two-year terms. While the fund anticipates adding private equity, the fund’s private markets program is initially focused on private credit and real assets.

The duties of the consultant include assisting in sourcing and conducting due diligence on investment opportunities in the private markets and developing and presenting investment performance results, according to the RFP.