NAC355.340. Placement of investments and co-investments; commitment of money for investment opportunities; policies and procedures governing investments.

     1. Subject to the requirements of this section, upon the approval of a two-thirds majority of the members of the Board currently serving, with the State Treasurer being in the majority, the Corporation may:

     (a) Place direct investments and co-investments with strategic investors.

     (b) Commit money for unique private equity investment opportunities in this State.

     2. The Board shall adopt policies and procedures governing investments made pursuant to this section. Any investment made pursuant to this section must comply with the policies and procedures adopted pursuant to this subsection. At a minimum, the policies and procedures must establish due diligence controls that provide reasonable assurance that any investments pursuant to this section are likely to meet the investment performance objectives of the Corporation. The due diligence controls may include, without limitation:

     (a) Entering into a contract with an investment advisor, investment consultant or any other person to evaluate an opportunity for an investment pursuant to this section. The Corporation may not enter into such a contract with an investment advisor, investment consultant or other person who has a business or familial relationship with a member of the Board or the management of a fund or business being evaluated or whose independence of judgment may reasonably be affected by a commitment to the interests of another person.

     (b) Entering into a partnership with an institutional investor that has invested in the opportunity pursuant to which the Corporation and the institutional investor share analytical resources.

     (c) Establishing requirements for the due diligence efforts of the State Treasurer’s staff and any subcommittees of the Board that perform due diligence for investments made pursuant to this section.

     3. The Corporation may place investments pursuant to this section with an external asset manager other than the Fund of Funds Manager or through the Fund of Funds Manager in accordance with the agreement between the Corporation and the Fund of Funds Manager.

     4. The Corporation may not invest more than $10 million pursuant to this section.

     (Added to NAC by St. Treasurer by R128-11, eff. 2-20-2013)