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OHA trustees approve updated private‑markets guidelines, sharply increase secondary allocation
Summary
The Office of Hawaiian Affairs Committee on Investments and Land Management approved revised 2024 private‑markets commitment guidelines that raise the fund's allocation to secondary strategies to accelerate deployment of capital; the vote was 8-1.
Trustees on the Office of Hawaiian Affairs Committee on Investments and Land Management on Jan. 22 approved updated investment guidelines for the Native Hawaiian Trust Fund's 2024 private‑markets commitment plan, shifting a large portion of the fund's planned allocations into secondary strategies.
Administration staff presented the action item, ILM 25-01, and Endowment Director Ryan Lee said the change responds to difficulty deploying capital late in 2024 as many top‑tier funds had closed fundraising. "This adjustment will allow the Native Hawaiian Trust Fund to capitalize on the current market opportunities and enable for faster deployment," Lee said, explaining administration's recommendation to increase the allocation to multi‑manager secondary funds.
The packet described the 2024 commitment plan as having a $45 million to $60 million budget and said administration adopted a discretionary "box" framework that allows staff to commit $5 million to $20 million across four to eight firms within the 2024 fund vintages. Lee told trustees the committee's recommendation increases the secondary strategy allocation while reducing exposures to other sectors such as credit and real assets.
Trustee questions focused on manager selection and the approval process. Trustee Aquino asked who will make the investment decisions and whether the trustees will work with current managers. Lee said administration will lead diligence with its broker‑consultant and "administration is leading that effort," and that one secondary fund commitment has already been made. He said the board's delegated discretionary framework permits the CEO to approve memoed commitments that meet the guidelines.
Trustees moved and seconded the action; the committee recorded a roll‑call vote with eight "yes" votes and one "no." Trustee Ahuna was the sole vote against the item; other trustees recorded as voting "aye" included Trustee Akaka, Trustee Akina, Trustee Alapa, Chair Kahele, Trustee Lindsey, Vice Chair Waheae and Chair Souza. The action was recorded as passed.
What this means going forward: administration said it will return to the committee once the 2024 budget has been committed to seek approval of any additional 2025 private‑markets commitments and will provide a full update on 2024 activity.
Trustees did not amend the guidelines on other substantive terms during the meeting.
Ending: The trustees approved the guideline changes to accelerate the fund's ramp up into private markets; administration will continue manager diligence and report back to the committee on commitments and next steps.
