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Danvers Retirement Board approves $2 million transfer to cash as Segal Marco signals harvesting phase for private equity
Summary
Segal Marco told trustees Gerber Taylor’s Palladian Partners VII is in harvest mode and recommended using US equities for operating cash; the board unanimously approved $1 million from Rhumbline Russell Growth 1000 and $1 million from Eagle Management to meet liquidity needs.
Gerber Taylor and MetLife delivered their annual reviews to the Danvers Retirement Board on Jan. 7, 2026, and Segal Marco recommended trustees take liquidity from equities to meet near‑term cash needs.
"They are in harvest mode," Matt Kinnear, Head of Client Services at Gerber Taylor/Palladian, said of Palladian Partners VII, the private equity fund in which Danvers committed $2,000,000. Kinnear said the partnership has called $1,000,000 and returned $1,714,000 in distributions to date and that managers expect increasing liquidity over the next one to three years as remaining assets are sold.
Rafik Ghazarian, Segal Marco’s investment manager for the account, briefed the trustees on system performance and cashflow needs. He noted the U.S. Equity Composite is roughly 3 percentage points overweight and told the board that liquidity could be sourced from that allocation. "There is nothing for the board to worry about" in MetLife’s recent Q4 dip, Ghazarian added, emphasizing historical cumulative returns.
Acting on Ghazarian's recommendation, the Board approved a transfer of $1,000,000 from Rhumbline Russell Growth 1000 and $1,000,000 from Eagle Management into the system’s operating cash account to satisfy near‑term outflows. Mike Hagan moved the transfer and Heather Russo seconded; the motion carried unanimously.
Rafik said Segal Marco will continue to monitor underperforming managers (he cited Kayne Anderson and Eagle) and will advise the Board when market or manager conditions make a reduction appropriate. Trustees did not approve any permanent reallocation at the meeting; the action was limited to funding operational cash requirements.
The board received manager packet materials and reviewed performance line‑by‑line. The Board’s net investment change increased ending market value from $169,801,136 to $190,998,986, according to the meeting materials.
Next steps: Segal Marco will monitor manager recovery and secondary market opportunities for the Palladian partnership; trustees asked that staff return recommended rebalancing options if additional cash is required.
