PROVIDENCE – The city pension fund no longer includes any investments with Gov. Gina M. Raimondo’s former venture capital firm.
The city’s last remaining fund with PJC, the firm Raimondo co-founded and ran prior to winning public office – formerly known as Point Judith Capital, ended on Dec. 31. The Providence Board of Investment Commissioners in a meeting on Jan. 28 voted unanimously to sell the single remaining portfolio company, a live-events operator known as InviteManager, as recommended by Eric Bertonazzi, CEO of Wainright Investment Council, the city’s investment adviser.
Since the fund ended, PJC distributed ownership to individual investors in the private equity fund, which includes the city. While the city could have hung on to its shares, Bertonazzi suggested it take the offer from the fund buyer, The Blackstone Group.
The city’s remaining shares, valued at $212,000 when the fund ended, were sold to Blackstone at just under $117,000.
The city and state have struggled in the past to cut ties to investments with PJC, despite expired commitments on its investments, as The Providence Journal has reported. The state pension fund has also ended its $5 million, 10-year investment earlier this month, according to the Journal.
As of Sept. 30, the city had received $1.3 million in distributions back on its nearly $979,000 investment, with an average annual net rate of return at 5.11%, according to Ben Smith, city spokesman.
Nancy Lavin is a PBN staff writer. You may reach her at Lavin@PBN.com.
