LACERS private equity consultant defends itself before board

The Los Angeles City Employees Retirement System’s private equity consultant defended itself against accusations that it had skewed its performance numbers, telling the LACERS board that it had done its best to be transparent about all excluded performance data.

Portfolio Advisors was the incumbent and one of two finalists in LACERS’ recent search for a private equity consultant, and it expected to have its contract renewed, as LACERS staff recommended, at the July 11 meeting. Instead, the company found itself accused of puffing up its numbers through the exclusion of previous clients, and an especially large client, the Pennsylvania State Employees Retirement System. With doubts raised about the integrity of Portfolio Advisors and the thoroughness of the RFP process, the board canceled its RFP and decided to begin anew just as it reached the finish line (MMR, 7/14/17).

Portfolio Advisors returned to the board July 25, in what was scheduled to be a routine overview of recent private equity commitments (MMR, 7/24/17), and used the opportunity to defend its reputation.

“We left a very good footnote trail so there was no deception, and we followed the same consistent strategy that we used three years ago when we were hired,” said Brian Murphy, managing director at Portfolio Advisors. “Nothing changed from the way that we did it before. I was a little disappointed that having worked with you for three years, we got zero benefit of the doubt.”

Read the full story: LACERS private equity consultant defends itself before board

Published by Money Management Report/Pageant Media.

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