Deals

Ham Lane, PCG in battle for Oregon

Two private equity advisory firms, Hamilton Lane and Pacific Corporate Group, are the finalists in Oregon’s search for a new consultant, following heavy turnover at PCG.

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Hamilton Lane and Pacific Corporate Group (PCG), two alternative investment advisory firms, are the finalists in the Oregon Investment Council’s search for a new private equity investment advisor.

Bala Cynwyd, Pennsylvania-based Hamilton Lane is hoping to oust La Jolla-based PCG from its incumbent position as Oregon’s sole private equity advisor.

According to recent minutes from the $75 billion Oregon Investment Council’s meeting with representatives from the two advisory firms, the council will make a final decision in April.

Oregon issued a request for proposals from private equity advisory firms following heavy turnover at PCG, which is owned by founder Christopher Bower.

PCG has been Oregon’s advisor for 15 years. According to the council minutes, Bower highlighted the state pension’s long-term performance in private equity. He also “addressed organizational growth and recent senior investment professional departures”. The minutes do not describe what Bower said about the departures, which includes the departure of the president of PCG’s asset management division, Monte Brem.

According to the minutes, council member Allan Emkin called in via telephone to the January 22 meeting and “noted that both Hamilton Lane and PCG are the two premier private equity consulting organizations that continue to dominate the industry”.

“He additionally provided some information to the Council, since he has been working directly with [the California Public Employees’ Retirement System] to help evaluate the operations at PCG, in light of management turnover,” according to the minutes.

Oregon has one of the largest private equity programmes in the world, and is a veteran LP in the market, having been an early backer of Kohlberg Kravis Roberts, among other firms.

In other news, Hamilton Lane recently won the contract to advise Massachusetts’ Pension Reserves Investment Trust (MassPRIM), according to reports.

MassPRIM currently has a 6 percent allocation to private equity, and the pension would like to raise that to 10 percent, according to reports.