SENNA

Pension Giant MSBI Seeks Private Markets Consultant

CHICAGO - The $150 billion Minnesota State Board of Investment (MSBI) has launched a search for a private markets and alternatives consultant, according to people familiar with the matter. The public pension, which oversees assets for the state of Minnesota, is looking to bolster its expertise in private equity, real estate, and other illiquid strategies.

The move comes as institutional investors face growing pressure to boost returns in a low-yield environment. MSBI, one of the largest public pensions in the U.S., has historically maintained a significant allocation to public equities. However, like many of its peers, the fund is now seeking to increase its exposure to private markets in pursuit of higher yields.

"MSBI recognizes the need to expand its private markets capabilities to drive performance," said one source, who requested anonymity to discuss the pension's internal deliberations. "This RFP is part of a broader effort to strengthen the fund's alternatives platform and identify the right consulting partner to guide that process."

The pension's current 30% allocation to private markets includes investments in buyout, venture capital, real estate, and infrastructure funds. MSBI is looking for a consultant to help it navigate the increasingly competitive private investment landscape, assess manager selection, and develop tailored portfolio construction strategies.

Industry experts say the search reflects a broader trend among large public pensions to professionalize their private markets programs. As allocations to alternatives have grown, funds are seeking specialized expertise to underwrite complex transactions, perform due diligence, and monitor investments.

"Pensions like MSBI recognize that private markets require a different skillset than traditional public market investing," said Jenny Wu, managing director at consultancy Alpha Advisors. "Bringing on a dedicated private markets consultant can help them make more informed decisions and maximize the risk-adjusted returns from these illiquid strategies."

The RFP process is expected to conclude within the next few months, with MSBI aiming to have a new private markets consultant in place by the end of the year. The pension declined to comment on the search.