OUR exclusive story Monday on the State's $32 billion retirement fund being authorized to invest in private equity caught a lot of folks flat-footed, including those who had long advocated the changes that were quietly made last spring by the General Assembly. Nashville Capital Network Executive Director Sid Chambless (at left) told VNC this morning: “This is extremely important news for private equity and entrepreneurship in the state of Tennessee. For quite sometime, Tennessee firms were at a disadvantage because our state was one of six or seven that did not invest in private equity or venture capital. Although the change in law does not guarantee any of those funds will flow into Tennessee firms, it at least opens the door for the state to invest in local private equity and venture capital. Worthy firms are no longer prevented by law from receiving state pension funds. Additionally, from a simple asset allocation standpoint, this is a step in the right direction for the State of Tennessee and increases the likelihood for better returns to TCRS.” In hindsight, TCRS' mandate may seem overdue and obvious. But, the fact the step has been taken seems likely to change the tone and direction of the entire discussion of investment in Tennessee.
Thursday, August 28, 2008
TCRS Private-equity move ripples across state
OUR exclusive story Monday on the State's $32 billion retirement fund being authorized to invest in private equity caught a lot of folks flat-footed, including those who had long advocated the changes that were quietly made last spring by the General Assembly. Nashville Capital Network Executive Director Sid Chambless (at left) told VNC this morning: “This is extremely important news for private equity and entrepreneurship in the state of Tennessee. For quite sometime, Tennessee firms were at a disadvantage because our state was one of six or seven that did not invest in private equity or venture capital. Although the change in law does not guarantee any of those funds will flow into Tennessee firms, it at least opens the door for the state to invest in local private equity and venture capital. Worthy firms are no longer prevented by law from receiving state pension funds. Additionally, from a simple asset allocation standpoint, this is a step in the right direction for the State of Tennessee and increases the likelihood for better returns to TCRS.” In hindsight, TCRS' mandate may seem overdue and obvious. But, the fact the step has been taken seems likely to change the tone and direction of the entire discussion of investment in Tennessee.
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