Illinois Teachers Retirement System, Springfield, committed up to $150 million to the Apollo V buyout fund. Funding comes from cash. The $24 billion system gradually is moving toward allocating 7% of the systems assets to private equity. Brad Morrow, deputy chief investment officer, told trustees at their meeting on Thursday that he expects to reach the target in 2005. The system so far has committed $1.3 billion to 25 private equity partnerships managed by 17 companies.
Also, consultants PCA and Townsend are finalists in the systems search for a consultant to review its $2.4 billion real estate portfolio. The system has 10% of assets invested in real estate; its target is 8%. Trustees might make a selection in late April or mid-May.
Trustees deferred a decision on a staff recommendation to hire an independent fiduciary counsel. Trustees said they preferred to wait for the recommendation of a new executive director and in-house general counsel; executive director Keith Bozarth left the system today. Kennedy Associates, the systems outside executive recruiter, said there is "a great deal of interest in the position and that finalists will be interviewed the first two weeks in May. There was no update on the search for a new in-house general counsel.