Teachers' Retirement System of Illinois, Springfield, adopted an implementation plan for fiscal 2006 for investing $600 million in private equity. The estimated allocation will be $225 million to venture capital, $300 million to buyout funds, $50 million to special situation funds and $25 million to subordinated debt managers. Consultant Callan will assist the fund's staff in searching for managers throughout 2006. The $33.1 billion system's overall private equity allocation is 4% of total assets, currently $1.3 billion; about 3%, or $986 million, was invested as of March 31, said John Day, a TRS spokesman.
The fund also approved a $45 million commitment to Banc FundVII; $25 million to Wind Point Partners VI; and $20 million to Granite Ventures II.
Separately, the system authorized a search for one or two managers to run a total of $670 million in active international growth equities. Trustees on May 20 approved changing the plan's international equity structure to active from passive management. State Street Global Advisors currently manages the assets in an optimized EAFE index fund, which wiCallanclosed, said Mr. Day. Callan is assisting. No additional details were available.