A bill introduced in the Indiana General Assembly, which convenes today, would ease the way for the $10 billion Indiana Public Employees’ Retirement Fund and the $5.5 billion Indiana State Teachers’ Retirement Fund to invest in private equity, real estate and other alternative investment strategies.
The legislation would allow the two Indianapolis-based plans to invest in commingled or pooled funds, opening the way for investment in limited partnerships and other pooled vehicles. The plans currently are allowed to invest only in separate accounts and must access private equity through direct investments or by becoming a general partner — approaches that officials do not want to use.
E. William Butler, executive director of Indiana PERF, and Patricia J. Gerrick, PERF chief investment officer, said the bill, which would be effective July 1, has a good chance of passing. Both plans have been conducting private-equity allocation studies in preparation.
