Connecticut’s state treasurer is committing up to $145 million from state employees’ pension fund to invest in businesses housed in this state.
Treasurer Denise L. Nappier said the new initiative will invest in Connecticut companies of varying sizes and stages of development – from mature to startup – to boost the state’s economy and jobs, while maximizing returns on state workers’ investments.
“This is, by no means, merely an altruistic policy,’’ Nappier said in a statement. “It’s about making profitable investments that have the ancillary benefit of a positive macroeconomic impact on our state. Performance will be measured, first and foremost, by risk-adjusted returns, followed by other factors such as job creation and retention and overall economic growth.”
To achieve that, Nappier said her office plans to hire three outside fund managers seasoned in private debt and equity, and venture-capital markets, to identify investment opportunities. The pension’s investments with them are contingent upon negotiating contract terms and partnership papers, she said.
They are:
- Connecticut Growth Capital LLC, in which Nappier says she is considering a commitment of up to $75 million. Westport’s Balance Point Capital Partners would manage the fund that would provide loans to middle-market companies.
- Nutmeg Opportunities Fund I LLC, with a proposed commitment of up to $50 million for direct in-state investments. New York’s J.P. Morgan Private Equity Group would manage the fund, which would target opportunistic private-equity investments in state firms.
- Constitution Fund LLC, which includes a proposed commitment of up to $20 million for venture capital investments in early-stage, high-potential companies. West Hartford’s Fairview Capital Partners would manage the fund.
Connecticut’s multi-billion-dollar state pension invests equity in companies and assets worldwide to ensure retirement benefits for 212,000 state workers and retirees.
