The Utah School and Institutional Trust Funds Office manages $4.8 billion on behalf of Utah's public schools and 10 other state institutional trusts, with a target allocation of 40% in private markets and a co-investment program that is actively expanding. Ryan Kulig, Finance and Operations Officer, oversees the full legal process alongside compliance, finance, and portfolio administration. His team is four people, one of whom is part-time.
Deal flow at SITFO is substantial. In a recent month, the team closed five funds through Covenant, with seven more closing the following month. The legal work is complex, the timelines are tight, and the team managing it is lean by any measure.
How Covenant came in
SITFO found Covenant through a reference call with another investor. When Mr. Kulig asked how that investor handled its legal process, the answer was Covenant. He made the switch, and the case for it became clearer with every transaction.
Before Covenant, SITFO worked with a consultant whose process was largely manual, with analysts working through documents by hand. To stress-test the transition, Mr. Kulig ran a direct comparison: he had both providers review the same funds independently, then compared the results. Covenant's work was more robust, faster, and less expensive.
When the deal closes Friday
The secondary transaction tells the story most directly. SITFO received the purchase and sale agreement on a Tuesday. The deal needed to close by Friday. Covenant turned red lines in two days. SITFO closed the transaction, acquiring a holding at an approximately 8% discount to market.
For a public institution managing trust funds on behalf of Utah's schools, participating in a transaction that generates an immediate 8% return is not a routine outcome. Getting there required legal infrastructure that could move at the pace of the opportunity.
The secondary transaction is one example among many. SITFO has used Covenant for traditional LPA underwriting, co-investment documentation, and more complex work including a full LPA structured for a fund of one in which SITFO was the sole investor. The program is broad and the volume is high.
Negotiating as rigorously as possible
SITFO collaborates with a state attorney general representative who provides counsel on state-specific legal matters. For securities work including fund review, side letter negotiation, and co-investment Mr. Kulig's goal for the legal program is straightforward: eliminate every risk that could impair a strategy the investment team has underwritten, and negotiate as rigorously as the counterparty will allow, on every deal, regardless of size or complexity.
“Covenant’s attorneys are highly responsive and communicate clearly. They address the concerns we raise while also identifying issues and opportunities we may not have considered. That combination of responsiveness, clarity, and substantive input has made our legal process significantly more efficient.”
— Ryan Kulig, Finance and Operations Officer