University of Illinois Foundation, Urbana, might decide later this year to renew a search for managers to handle the $725 million foundation's 3% private equity allocation, said Bradley K. Hatfield, vice president for administration. He said fund officials may consider both direct and fund-of-funds approaches. The allocation would be funded over several years: "We're going to get there," Mr. Hatfield said. "But it's a lot to allocate (for its size fund). We're going to take our time."
In its initial search, the foundation's board rejected the fund-of-fund finalists early this year because they were concerned about risk, fees and the private equity market in general. The board wants to study the issue further, and it may seek discussions with other fund sponsors for ideas about programs.
Callan is assisting.
