Illinois Teachers hires 3 consultants, plans search, commits $450 million
By Kevin Olsen | February 22, 2013 4:17 pm
Illinois Teachers’ Retirement System, Springfield, hired three consultants to assist with co-investments, authorized a search for emerging markets debt and committed a total of $450 million to four managers, confirmed spokesman David Urbanek.
The $38.1 billion pension fund hired ORG Portfolio Management and Real Asset Portfolio Management to advise the pension fund in the creation of a co-investment program within the $4.6 billion real estate portfolio. Real estate consultant Callan Associates will also assist, Mr. Urbanek said in a telephone interview.
The pension fund also hired Stout Risius Ross to become part of the existing private equity consultant pool that advises on co-investments. LP Capital Advisors and TorreyCove Capital Partners are already in the pool.
Separately, TRS plans to search for an emerging markets debt manager, but the size of the mandate and when the RFP will be posted have not been determined yet. The RFP will be posted on TRS’ website.
Also, TRS committed $250 million to Carlyle Partners VI. The pension fund has $726 million already invested with the Carlyle Group. It also committed $125 million to PIMCO BRAVO Fund II, which will buy debt such as troubled commercial and residential mortgages. TRS has $2.57 billion invested with Pacific Investment Management Co..
It has also made a first-time hire of Ativo Capital Management to run $25 million in active international equity as part of TRS’ emerging managers program.
The pension fund also committed an additional $50 million to Oaktree Enhanced Income Fund, bringing the total commitment to $125 million for the fund, which is managed by Oaktree Capital Management (OAK).