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Steven M.vtt

{{00:00:07}}
In terms of private markets we obviously
are more strategic than tactical.

{{00:00:11}}
So we tend to take a longer term view.

{{00:00:13}}
We're really looking for those performance
drivers over a 10 to 15 year time horizon.

{{00:00:19}}
We recently had some regulatory
changes in the state of New York that

{{00:00:23}}
also applies to the city of New York.

{{00:00:24}}
So our opportunity set expanded for
alternative assets by about 10%.

{{00:00:29}}
So we are putting more money to work
in private equity private credit.

{{00:00:33}}
infrastructure in real estate
core and non core combined.

{{00:00:37}}
The areas where we're really quite
focused right now are building

{{00:00:40}}
out, say for example, our private
credit book where about 70 percent

{{00:00:44}}
of our assets under management are
in separately managed accounts.

{{00:00:48}}
Opportunities that they can toggle
between senior credit to asset backed

{{00:00:52}}
funding opportunities, to mezzanine debt
special situations and distressed debt.

{{00:00:58}}
Again, trying to build
out those capabilities.

{{00:01:00}}
We tend to be more strategic than
tactical, but we like when our

{{00:01:03}}
managers can be more tactical.

{{00:01:06}}
Private equity we continue to
allocate more money to that asset

{{00:01:10}}
class, notwithstanding the fact that
we haven't seen distributions to

{{00:01:13}}
the extent we had, say, in 21, 22.

{{00:01:16}}
We are consistent investors
in these strategies.

{{00:01:19}}
We don't believe it makes any sense to
lean in and lean out, give them a call.

{{00:01:22}}
Our 290 billion asset base,
we really can't be nimble, so

{{00:01:26}}
we need to be strategic and
thoughtful around deployment.

{{00:01:30}}
Real estate right now we've got a
strategic underweight to office and retail

{{00:01:34}}
to a lesser extent, a slight overweight
to multifamily and industrial logistics.

{{00:01:40}}
We're looking at potentially addressing
that strategic underweight to office over

{{00:01:44}}
the course of time, meaning two years,
as we think that market's bottoming

{{00:01:48}}
out and that there might be really good
opportunities to continue to invest there.

{{00:01:57}}
We look at everything, and when
you say new opportunities, that

{{00:01:59}}
means re ups with existing managers
or new managers that may have a a

{{00:02:03}}
differentiated strategy, a different
return stream uncorrelated returns

{{00:02:09}}
relative to the rest of the, portfolio.

{{00:02:12}}
We look, at everything.

{{00:02:12}}
We look at size and scale, because
again, to leverage our asset

{{00:02:17}}
base appropriately to make a
difference in the portfolios, we.

{{00:02:20}}
We need managers that tend to be slightly
larger than, say, more emerging markets.

{{00:02:26}}
We do invest in emerging and diverse
managers as well through other

{{00:02:29}}
programs, but as a direct investor,
again, looking for size and scale.

{{00:02:34}}
We obviously look for a
consistent capability over time.

{{00:02:37}}
We look for a historical track record
that is discussed in decades, not years.

{{00:02:42}}
We are cautious around private credit
in particular because there's a lot

{{00:02:46}}
of new entrants to the marketplace.

{{00:02:48}}
So we tend to adhere to the more
tried and true managers out there

{{00:02:51}}
like Apollo and Ares and others.

{{00:03:00}}
I'm reluctant to say, to
answer the question, but I'm

{{00:03:02}}
going to answer it this way.

{{00:03:03}}
I still believe that
there's an element of U.

{{00:03:05}}
S.

{{00:03:06}}
exceptionalism right now.

{{00:03:07}}
And I don't mean that in
an arrogant American way.

{{00:03:09}}
I mean that our economy is
actually quite strong at 2.

{{00:03:12}}
8 percent GDP growth.

{{00:03:13}}
Inflation's come down very well along
the lines of the Fed expectations

{{00:03:18}}
relative to interest rate cuts.

{{00:03:19}}
Unemployment is relatively low.

{{00:03:22}}
We recently had an election last week
where we have a new president coming in.

{{00:03:26}}
Perhaps with a more pro business
agenda so we think that there might

{{00:03:29}}
be a decline of regulations that
may spark animal spirits, more M& A

{{00:03:36}}
activity that will certainly help the
private equity sector, the marketplace.

{{00:03:40}}
On the other side of that, we're
cautious around interest rates.

{{00:03:43}}
I do think with the change of
administration we're going to continue to

{{00:03:47}}
see a deficit spending for coming years.

{{00:03:50}}
It's already at relatively high levels.

{{00:03:52}}
And I don't see that correcting itself.

{{00:03:54}}
And I think the implications of that
are higher term premia out the curve

{{00:03:59}}
and perhaps higher official rates
for longer than the market expects.

{{00:04:03}}
I think that right now the
market is pricing in, too high an

{{00:04:07}}
expectation for interest rate cuts.

{{00:04:09}}
Again, given the change of the
of the administration, it's about

{{00:04:12}}
to happen in January this year.

{{00:04:19}}
It really has, and we look at everything.

{{00:04:21}}
We have the privilege of managing
290 plus billion across five

{{00:04:25}}
different, New York City pension
plans, police, fire, teachers, etc.

{{00:04:31}}
Each of them has their own specialty
consultants across private assets as

{{00:04:35}}
well as their own general consultants.

{{00:04:37}}
Within the Bureau of Asset Management,
I run a team of 130 people.

{{00:04:40}}
We look at everything.

{{00:04:41}}
We do all of our own
underwriting in house.

{{00:04:43}}
We do all of our own due diligence.

{{00:04:44}}
We again, I would look for, in
terms of investment opportunities,

{{00:04:48}}
I look for consistency.

{{00:04:50}}
Again, not leaning in and out of the
markets, but looking for consistent

{{00:04:53}}
return generators that can drive alpha and
value creation over long periods of time.

{{00:04:58}}
And we look at that through evidence
of obviously IRRs as one metric, and

{{00:05:03}}
as well as distributions that can occur
through the life of a of an investment.

{{00:05:13}}
In terms of the outlook for
private markets, I'm still very

{{00:05:15}}
positive on private markets.

{{00:05:17}}
I do think that they have a unique
position in the marketplace.

{{00:05:20}}
My expectation is over the next decade,
you'll see more of a convergence

{{00:05:24}}
between public and private markets.

{{00:05:27}}
In terms of the, instead of looking
at the differences between public and

{{00:05:30}}
private, I look at the similarities, and
I do think that the performance drivers

{{00:05:34}}
across private assets will be the same
as public markets, meaning GDP growth,

{{00:05:39}}
inflation, productivity, government
spending private investment and things

{{00:05:44}}
like that will drive returns over time.

{{00:05:46}}
Again, the outlook is still favorable.

{{00:05:49}}
The only caveat I'd apply to
the top of that is it really

{{00:05:52}}
matters in terms of fees.

{{00:05:53}}
Are we getting good value creation?

{{00:05:55}}
Are we getting good alpha for basis
point of fees that we're paying?

In terms of private markets we obviously
are more strategic than tactical.

We're really looking for those performance
drivers over a 10 to 15 year time horizon.

We recently had some regulatory
changes in the state of New York that

So our opportunity set expanded for
alternative assets by about 10%.

So we are putting more money to work
in private equity private credit.

infrastructure in real estate
core and non core combined.

The areas where we're really quite
focused right now are building

out, say for example, our private
credit book where about 70 percent

of our assets under management are
in separately managed accounts.

Opportunities that they can toggle
between senior credit to asset backed

funding opportunities, to mezzanine debt
special situations and distressed debt.

Again, trying to build
out those capabilities.

We tend to be more strategic than
tactical, but we like when our

Private equity we continue to
allocate more money to that asset

class, notwithstanding the fact that
we haven't seen distributions to

We are consistent investors
in these strategies.

We don't believe it makes any sense to
lean in and lean out, give them a call.

Our 290 billion asset base,
we really can't be nimble, so

we need to be strategic and
thoughtful around deployment.

Real estate right now we've got a
strategic underweight to office and retail

to a lesser extent, a slight overweight
to multifamily and industrial logistics.

We're looking at potentially addressing
that strategic underweight to office over

the course of time, meaning two years,
as we think that market's bottoming

out and that there might be really good
opportunities to continue to invest there.

We look at everything, and when
you say new opportunities, that

means re ups with existing managers
or new managers that may have a a

differentiated strategy, a different
return stream uncorrelated returns

We look at size and scale, because
again, to leverage our asset

base appropriately to make a
difference in the portfolios, we.

We need managers that tend to be slightly
larger than, say, more emerging markets.

We do invest in emerging and diverse
managers as well through other

programs, but as a direct investor,
again, looking for size and scale.

We obviously look for a
consistent capability over time.

We look for a historical track record
that is discussed in decades, not years.

We are cautious around private credit
in particular because there's a lot

So we tend to adhere to the more
tried and true managers out there

I'm reluctant to say, to
answer the question, but I'm

I still believe that
there's an element of U.

And I don't mean that in
an arrogant American way.

I mean that our economy is
actually quite strong at 2.

Inflation's come down very well along
the lines of the Fed expectations

We recently had an election last week
where we have a new president coming in.

Perhaps with a more pro business
agenda so we think that there might

be a decline of regulations that
may spark animal spirits, more M& A

activity that will certainly help the
private equity sector, the marketplace.

On the other side of that, we're
cautious around interest rates.

I do think with the change of
administration we're going to continue to

And I think the implications of that
are higher term premia out the curve

and perhaps higher official rates
for longer than the market expects.

I think that right now the
market is pricing in, too high an

Again, given the change of the
of the administration, it's about

It really has, and we look at everything.

We have the privilege of managing
290 plus billion across five

different, New York City pension
plans, police, fire, teachers, etc.

Each of them has their own specialty
consultants across private assets as

Within the Bureau of Asset Management,
I run a team of 130 people.

We do all of our own
underwriting in house.

We again, I would look for, in
terms of investment opportunities,

Again, not leaning in and out of the
markets, but looking for consistent

return generators that can drive alpha and
value creation over long periods of time.

And we look at that through evidence
of obviously IRRs as one metric, and

as well as distributions that can occur
through the life of a of an investment.

In terms of the outlook for
private markets, I'm still very

I do think that they have a unique
position in the marketplace.

My expectation is over the next decade,
you'll see more of a convergence

In terms of the, instead of looking
at the differences between public and

private, I look at the similarities, and
I do think that the performance drivers

across private assets will be the same
as public markets, meaning GDP growth,

inflation, productivity, government
spending private investment and things

The only caveat I'd apply to
the top of that is it really

Are we getting good alpha for basis
point of fees that we're paying?

Steven Meier, Chief Investment Officer and Deputy Comptroller for Asset Management at the Office of the New York City Comptroller, shares insights on managing a $290 billion asset base across five NYC pension plans at SuperReturn North America. Discover how his team strategically navigates private equity, private credit, infrastructure, and real estate to achieve consistent, long-term returns. Learn about their approach to emerging opportunities, market trends, and adapting to regulatory changes in the investment landscape.