NYC Pensions Invest in Fund Managed by Ex-Comptroller’s Firm

(Bloomberg) — Four of New York City’s five public employee pensions are investing $9.5 million in an infrastructure fund co-founded by former comptroller William C. Thompson Jr.

Retirement funds for police officers, teachers, non-teaching school employees, and civil servants, are investing in American Triple I, a minority-owned private equity firm, as part of the pensions’ $20 billion emerging and diverse manager program.  ATI, founded by Clinton administration veteran Henry Cisneros, manages about $400 million in assets, according to a filing with the US Securities and Exchange Commission.

The city’s pension fund for firefighters didn’t invest in ATI.

Thompson, a Brooklyn Democrat, served as New York City comptroller from 2002 through 2009. As comptroller, Thompson was the city’s chief fiscal watchdog and investment adviser to the city pension funds. 

He ran for mayor in 2009, losing to Michael Bloomberg, who was elected to a third, four-year term.  The former mayor is the founder and majority owner of Bloomberg News parent Bloomberg LP. In 2013, Thompson ran against Bill de Blasio in the Democratic primary for mayor, but withdrew from the race.  

Thompson is currently the chair of the City University of New York’s Board of Trustees and is the chief administrative officer for Siebert Williams Shank & Co, a minority- and woman-owned investment bank. Cisneros, who led  the US Department of Housing and Urban Development under President Bill Clinton, is vice chairman of Siebert.

Thompson’s long career in politics and government didn’t influence the city pensions’ investment in ATI, said Shaquana Chaneyfield, a spokeswoman for current city Comptroller Brad Lander. BlackRock Inc. which manages a separate account of emerging and diverse infrastructure mangers for the city’s pensions, had full discretion to make the investment, she said.

“There was no advantage based on Bill Thompson’s prior role as comptroller,” Chaneyfield said in an email. “This is an investment risk-return based decision.” 

US public pensions have boosted their investments in airports, ports, toll roads, and renewable energy, as a way to achieve steady returns that can help protect against inflation. New York City’s $277 billion pension funds had $7.6 billion in infrastructure asset as of July 2024, according to the comptroller’s website.

American Triple I is part of consortium, including Vantage Airport Group, JetBlue Airways Corp and RXR Realty, building a new $4.2 billion terminal at John F. Kennedy International Airport for the airline. The new Terminal 6 is expected to begin operating in 2025 with construction complete in 2028. 

In addition to JetBlue, Aer Lingus and Cathay Pacific have said they will operate from Terminal 6.

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