2008 – 2014
CHMW, was engaged by the California State Teachers’ Retirement System (CalSTRS) in 2008 as an independent fiduciary and provided oversight of their entire hotel investment program that was held in numerous private equity funds. CHMW is responsible for evaluating CalSTRS’ current and future hospitality investments, including an assessment of the experience, performance history and management capabilities of funds and fund managers, assessing and recommending hospitality industry investment strategies, identifying and assessing on-going risk factors, preparing asset valuations and regular reporting of industry and market performance, including the benchmarking of key investment metrics. CalSTRS is the largest U.S. teachers’ retirement fund and the nation’s second largest public pension fund.
- Established a monitoring system to readily identify potential performance and/or market risk for each of the fund assets. Developed a KPI portfolio-based reporting system to communicate opportunities, risk and recommendations to CalSTRS. Actively engaged with management on operational “red flags” to proactively improve performance of the funds.
- Advised on investment opportunities and risks across multiple funds, including the successful initial public offering of the RLJ funds; Assisted with debt structuring efforts across funds.
- Performed annual budget reviews, identifying areas to improve revenue and cost containment.
“When the IPO lock-out period ended, there was some discussion and even a little pressure to start liquidating our shares early on. Because we listened to CHMW and did not liquidate when some other investors did, CalSTRS net on the shares we have sold will wind up being about $50,000,000 ahead of what we would have netted had we sold out between May and September of 2012. CHMW’s recommendations and our ability to be patient while the share price recovered and ultimately appreciated has paid off. CHMW has given us great advice all the way through the pre and post RLJ IPO process, and we truly appreciate your assistance.” – Don Palmieri (CalSTRS)