Key Takeaways
- • Massachusetts Pension Reserves Investment Management Board ($115.4B AUM) selected StepStone Group as its new private equity advisor effective July 2026, ending a relationship with incumbent Hamilton Lane after the current contract expires.
- • Hamilton Lane declined to submit a full proposal for the advisory mandate, responding only to the database services portion of the RFP, signaling a strategic shift away from the advisory business with MassPRIM.
- • MassPRIM's private equity portfolio generated a 6.9% net return over the past fiscal year, underperforming its primary benchmark of 10.9% but outperforming a new implementation benchmark of 9.5%; small- and mid-market buyouts led performance, followed by large/mega buyouts, growth equity, and venture capital strategies.
- • StepStone was selected from a competitive shortlist that included Aksia, Albourne, and Cambridge Associates, based on its market coverage breadth, dual advisory and data service capabilities, and operational stability and transparency.
- • The RFP process, launched in March 2025, attracted seven responses for both advisory and database mandates, with finalist interviews conducted on June 9; MassPRIM's "Future Initiative" with Hamilton Lane is nearing the end of its investment period, necessitating the transition.
Summary
The Massachusetts Pension Reserves Investment Management Board, managing $115.4 billion in assets, has appointed StepStone Group as its primary private equity advisor beginning July 2026. The move replaces Hamilton Lane, which held the advisory contract under terms expiring in 2026. According to Michael McGirr, director of private equity at MassPRIM, Hamilton Lane chose not to bid on the new advisory mandate, submitting a proposal only for the database services component of the request for proposal. This decision reflects a recalibration of Hamilton Lane's business priorities away from the advisory relationship with the pension fund.
The competitive procurement process launched in March 2025 and generated seven responses for each of the advisory and database service mandates. The advisory shortlist included Aksia, Albourne, Cambridge Associates, and StepStone, with finalist interviews conducted on June 9. MassPRIM's selection committee, chaired by Investment Committee member Constance Everson and including McGirr alongside five additional staff members, chose StepStone based on the firm's extensive market coverage, integrated delivery of both advisory and data services, and demonstrated stability and transparency. The transition timing aligns with MassPRIM's "Future Initiative" program with Hamilton Lane reaching the end of its investment period, necessitating a new provider for future capital commitments.
For fiscal year 2025, MassPRIM's private equity portfolio delivered a 6.9% net return, trailing the fund's primary benchmark of 10.9% but exceeding a newly implemented benchmark of 9.5%. Small- and mid-market buyouts posted the strongest results, followed closely by large and mega buyouts, growth equity, and venture capital strategies. The 6.9% return reflects performance across the full private equity portfolio, including diversified exposure across buyout strategies, growth investments, and emerging venture capital opportunities that MassPRIM has been actively building throughout fiscal 2025.
The competitive procurement process launched in March 2025 and generated seven responses for each of the advisory and database service mandates. The advisory shortlist included Aksia, Albourne, Cambridge Associates, and StepStone, with finalist interviews conducted on June 9. MassPRIM's selection committee, chaired by Investment Committee member Constance Everson and including McGirr alongside five additional staff members, chose StepStone based on the firm's extensive market coverage, integrated delivery of both advisory and data services, and demonstrated stability and transparency. The transition timing aligns with MassPRIM's "Future Initiative" program with Hamilton Lane reaching the end of its investment period, necessitating a new provider for future capital commitments.
For fiscal year 2025, MassPRIM's private equity portfolio delivered a 6.9% net return, trailing the fund's primary benchmark of 10.9% but exceeding a newly implemented benchmark of 9.5%. Small- and mid-market buyouts posted the strongest results, followed closely by large and mega buyouts, growth equity, and venture capital strategies. The 6.9% return reflects performance across the full private equity portfolio, including diversified exposure across buyout strategies, growth investments, and emerging venture capital opportunities that MassPRIM has been actively building throughout fiscal 2025.
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