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NEWS from the Office of the New York State Comptroller
Contact: Press Office 518-474-4015

State Pension Fund Commits Additional $50 Million to Invest in New York-Based Companies

Adds New Private Equity Investment Manager

November 25, 2014

The state pension fund has committed an additional $50 million for investments in New York State-based companies through its In-State Private Equity Investment Program, New York State Comptroller Thomas P. DiNapoli announced today. Investments made from this money will be overseen by Graycliff Partners, a new investment partner for the fund and one of 19 investment firms that manage In-State Private Equity investments.

“The In-State Private Equity Investment Program is proof that investing strategically in New York companies produces results. The program has returned nearly $300 million to the state pension fund and supported thousands of jobs across the state,” said DiNapoli. “This $50 million commitment to Graycliff will help to keep the state pension fund strong for the more than one million retirement system members and retirees as well as promote growth in our local economies.”

The In-State Private Equity Program is designed to meet fiduciary standards and provide investment returns to the state pension fund consistent with the risk of private equity. The program invests in New York State-based companies seeking capital for growth, to refinance ownership or for early stage investment. The program has returned $293 million to the state pension fund on 71 exited investments.

As of September, the state pension fund has invested $760 million in 292 companies and helped to create or retain nearly 4,000 jobs. Comptroller DiNapoli has more than doubled the pension fund’s commitment by adding $749 million to the In-State Program. Since 2007, three new managing partners have been added to oversee the program’s investments including Graycliff in 2014, Contour Venture Partners in 2011 and DFJ Gotham in 2009.

“Graycliff Partners has a long history of investing in and growing lower middle market businesses by supporting strong management teams and providing strategic and financial guidance. We view New York State as a region with a great depth and diversity of corporate and entrepreneur-owned businesses poised for expansion and crucial to economic development in the state. Graycliff Partners is pleased to partner with Comptroller DiNapoli and the New York State Common Retirement Fund in support of driving value to New York-based businesses,” said Andrew Trigg, managing director for Graycliff Partners.

The state pension fund selected Graycliff as a managing partner for the In-State Program in October, increasing the total number of partners to 19. The New York City-based firm will invest in buyout and growth equity transactions across the state.

More than $440 million is available for new investments through the program. For information, visit: http://www.osc.state.ny.us/pension/instate/

For a copy of the September 2014 progress report on the program, visit: http://osc.state.ny.us/pension/instate/Investing_in_NY_Report_2014.pdf

About Graycliff Partners

Graycliff Partners is an independent investment firm focusing on middle market private equity and mezzanine investments in the United States and Latin America. Graycliff Partners LP is an SEC-registered investment advisor under the US Investment Advisors Act of 1940, as amended. Since 1991, the Graycliff Partners team, previously operating as HSBC Capital, has invested over $1 billion and completed over 80 transactions. With offices in New York and São Paulo, Graycliff Partners seeks to partner with companies led by strong, entrepreneurial management teams, providing capital for acquisitions, management buyouts, recapitalizations, growth and expansion. For more information about Graycliff Partners visit http://www.graycliffpartners.com/.

About the Common Retirement Fund

New York State Comptroller Thomas P. DiNapoli is trustee of the New York State Common Retirement Fund, the third largest public pension plan in the United States with more than one million members, retirees and beneficiaries from more than 3,000 state and local government employers. The Fund has a diversified portfolio of public and private equities, fixed income, real estate and alternative instruments and has consistently been ranked as one of the best managed and best funded plans in the nation. Over the past 20 years, 82 percent of the cost of benefit payments has been funded by investment returns. The Fund’s fiscal year ends March 31, 2015.