Private Equity Expert to Run NYC’s Pension Funds

Larry Schloss has agreed to become the next chief investment officer for New York City.

(January 6, 2010) — Larry Schloss, who chairs private equity investment firm Diamond Castle Holdings, has been selected by New York City’s new comptroller John Liu to run the city’s $86 billion pension funds, according to Reuters.


Schloss’ appointment may be an indication that the New York City’s pension system may begin to view private equity investments – which have been battered in the past two years over losses, illiquidity, and a lack of exit strategies – in a more favorable light.


Schloss previously ran Credit Suisse First Boston’s private equity group, a $32 billion alternative asset investment business. He took that job after the bank took over Donaldson, Lufkin & Jenrette. Fifty-four year old Schloss received a B.A. from Tulane University and an M.B.A. from The Wharton School of the University of Pennsylvania.



To contact the <em>aiCIO</em> editor of this story: Kristopher McDaniel at <a href='mailto:kmcdaniel@assetinternational.com'>kmcdaniel@assetinternational.com</a>

Ontario Teachers’ Moves into Mortgage Insurance Business

AIG has sold its Canadian mortgage insurance unit to Ontario Teachers' Pension Plan.

(January 6, 2010) – The Ontario Teachers’ Pension Plan (Teachers’), the largest single-profession pension plan in Canada with $86.4 billion in net assets, is heading an investor group that will acquire American International Group Inc.’s (AIG) Canadian mortgage insurance business.


“This fits beautifully into our direct investment portfolio,” said Teachers’ spokeswoman Deborah Allan to CBC News in Canada. “Canadian mortgage insurance is a market that we’re interested in. It’s a niche market, it’s a growing industry and we plan to grow the business over the coming months.”


AIG’s Toronto-based United Guaranty Mortgage Insurance Company, with assets of roughly $274 million, is a private mortgage insurance provider in Canada that entered the market in 2006. It’s also the latest division to be sold by AIG. Insurance giant AIG has been selling assets to help repay its massive government bailout package received last fall in the midst of the financial crisis.  


In other news, the Canada Pension Plan Investment Board has unveiled two promotions, according to The Globe and Mail news service: Mark Wiseman is moved up from his role running private equity investments to head all of investments, and Don Raymond is named chief investment strategist.

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To contact the <em>aiCIO</em> editor of this story: Kristopher McDaniel at <a href='mailto:kmcdaniel@assetinternational.com'>kmcdaniel@assetinternational.com</a>

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