Private Market Consultant Services

The vendor is required to provide non-discretionary investment consulting services for its private market portfolio mandates, which include target allocations to the following asset classes: (1) private credit, (2) private equity, (3) private real assets, and (4) absolute return strategies.
- Strategic Planning and Program Structuring
1. Assist in the construction and buildout of a well-diversified alternatives portfolio, with the objective of enhancing the risk-return profile of both the alternatives portfolio and state fund total portfolio.
2. Long-Term and Annual Strategic Plans: Develop, monitor, and update a 3–5-year strategic alternatives plan, along with an annual pacing plan.
i. Plans should incorporate state fund return, risk, and liquidity objectives and outline structural adjustments across the alternative’s portfolio.
ii. Develop and maintain a comprehensive pacing plan for the Alternatives Investment Program. This pacing plan should outline target commitments and investment pacing for each asset class.
iii. Submit an annual review of the investment strategy, objectives, and guidelines, and make investment pacing recommendations.
3. Broader Alternatives Investment Strategies: Assist in evaluating other alternative investment strategies, including but not limited to fund of funds, fund of ones, separate accounts, and co-investments.
4. Portfolio Transition Planning: If applicable, guide the transition from incumbent consultants to new consultants.
- Ongoing Reporting: Provide detailed quarterly, and annual performance reports covering portfolio returns, risk exposure, sector allocation, geographic exposure, and alignment with State fund strategic goals. Provide ad-hoc and tailored reports for specific requests from state fund.
- Benchmarking and Peer Comparison: Develop and maintain appropriate benchmarks (including private and public market equivalents) for each asset class, sub-strategy, and the overall alternatives portfolio. Include peer and industry comparisons to contextualize State fund performance relative to similar funds.
- MWBE and Sustainable Fund Reporting: Submit quarterly reports on the portfolio’s alignment with State fund MWBE and Sustainable Investing goals. Reports should include updates on participation, detailing new commitments, progress made toward a MWBE and Sustainable Funds target, and related engagement efforts. Support staff on MWBE regulatory reporting.
- Fee and Expense Analysis: Perform a quarterly and annual review of management fees, carried interest, and related expenses to ensure they align with agreed terms and industry standards.
- Comprehensive Risk Management Framework: Implement a monthly, quarterly, and annual risk management system that monitors investment, operational, and market risks across the alternatives portfolio.
- Liquidity and Cash Flow Management: Establish protocols for liquidity management, tracking cash flows, and maintaining adequate liquidity to meet State fund commitments. Coordinate with third-party service providers to ensure that allocations to alternative investments balance investing objectives with the ability to meet State fund ongoing liquidity needs.
- Stress Testing and Scenario Analysis: Perform regular stress testing and scenario analyses to assess alternatives portfolio resilience under different economic and market conditions. Include risk parameters and analysis on expected shortfall and other systematic risk factors. Report on potential impacts and provide recommendations to mitigate risks.
-  Risk Reporting and Benchmarking: Deliver periodic risk reports, including portfolio-level tracking and analysis, benchmarked against relevant market and peer group standards.
- Educational Sessions: Conduct educational sessions for State fund Board, Investment Committee, and Investment Staff as requested.
- Access to Proprietary Research and Resources: Provide state fund with access to proprietary research, white papers, market analyses, and other resources to enhance understanding of relevant investment topics.
- Ad-hoc Consultative Support: Offer ongoing advisory support and respond to special requests for analysis or market insights, ensuring state fund has timely access to expert perspectives as new opportunities or challenges arise.