FROM: Don Pierce, Chief Investment Officer
SUBJECT: LuminArx Capital Management - MCA
RECOMMENDATION:
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Recommend that the Board approve the creation of a Master Custodial Account (MCA) with LuminArx Capital Management, subject to completion of operational due diligence and finalization of legal documents.
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BACKGROUND:
LuminArx Capital Management ("LuminArx") was founded by Gideon Berger and Min Htoo in January 2023, with launch of the first commingled fund expected in Q3 2023. The firm will manage approximately $1 billion of assets in the commingled fund, with an additional $800 million of committed capital for future co-investment capacity. LuminArx is located in New York City, and will employ approximately 20 people at launch, of which 13 are investment professionals.
Prior to co-founding LuminArx, Messrs. Berger and Htoo were co-CIO's and members of the management and investment committees at Blackstone Alternative Asset Management ("BAAM"), where they were responsible for the investment activity and company management of approximately $80 billion of assets under management. The two overlapped as co-CIO's for four years (2017-2021), where they developed a close working relationship and refined their investment process, while contributing significantly to the success and growth of BAAM.
LuminArx offers a special situations-focused and opportunistic capital solutions strategy, which seeks to deliver consistent returns through all economic cycles. The firm focuses on achieving this through the ability to invest across the capital structure in diverse sectors, spanning both public and private markets - LuminArx will target sourcing, underwriting and structuring investments that combine debt-like downside protection with equity upside potential. Initial areas of investment will include examples such as corporate financings, asset-backed lending, and specialty finance.
Staff and NEPC believe that LuminArx is a compelling opportunit...
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