The Allstate Corporation announced Tuesday that the company is launching its first emerging manager program to invest with smaller private equity and private real estate equity asset managers, with a focus on minority- and women-owned firms.
“We believe Allstate is leading the insurance industry in establishing this emerging manager investment program,” said Edgar Alvarado, Allstate’s group head of real estate equity. “We see this program as our farm team–a way to identify the next generation of investment stars, break down the high barriers to entry for these talented managers, and have Allstate be a catalyst in the success of emerging managers. Just as important, Allstate expects its socially responsible investments to achieve strong returns–we truly can say we do well by being a force for good.”
The Allstate program will be administered by the Customized Fund Investment Group (CFIG). Allstate and CFIG are seeking managers with strong investment track records and who are raising their first, second or third institutional funds and with less than $500 million in assets under management. In addition, at least 33 percent of a participating firm will be owned or controlled by women and/or minorities, or at least 50 percent of fund carried interest will be paid to women or minority staff.
The program’s fund managers will identify investments in the United States that meet Allstate’s desired risk-return profile.
Allstate has been a leading institutional investor in real estate for more than 20 years, and has a broad real estate investment platform that includes global funds, co-investments, joint ventures and separate accounts.
In addition, Allstate is a leading institutional limited partner in buyout, mezzanine, distressed and growth capital private equity funds.
Allstate’s investment portfolio totaled $80.48 billion in assets under management as of September 30, 2013.
Source: The Allstate Corporation