Chicago teachers plan eyes buyout search, commits $90 million to 5 managers

Chicago Public School Teachers' Pension & Retirement Fund plans to issue an RFP next week for a U.S. or global buyout manager, said Angela Miller-May, director of investments, in an email.

The anticipated commitment size is $25 million.

The RFP will be posted on the $9.8 billion pension fund’s website.

A hiring decision is anticipated in the second quarter.

Additionally, the pension fund committed $90 million total to five private equity managers:

  • $25 million total to two Adams Street Partners fund of funds — $15 million to Adams Street U.S. Small Market Buyout Fund and $10 million to Adams Street Venture Innovation Fund;
  • $20 million to Palladium Equity Partners V, a buyout fund;
  • $20 million to ICV Partners IV, a buyout fund;
  • $15 million to Hispania Private Equity III, managed by HCP Management; and
  • $10 million to HarbourVest Partners’ fund of funds HarbourVest International Private Equity Partners VIII.

The pension fund has previously invested with all five managers in other funds.

Historically, 85% of the pension fund’s private equity portfolio has been invested in funds of funds and the remaining 15% to funds directly. The pension fund is aiming for a 50/50 split in the future, along with a private equity allocation of 5%, up from 3%, Ms. Miller-May said.