INDIANAPOLIS — Indiana Public Employees' Retirement Fund created the Indiana Investment Fund I, a $105 million fund investing exclusively in Indiana-based private equity, said David J. Adams, PERF executive director. The $15 billion plan will invest $100 million as the sole limited partner of the new fund; Credit Suisse, the general partner, will invest $5 million. "These are not economic development dollars," Mr. Adams said. "What's critical to us … is the rate of return."
Indiana PERF is increasing its overall private equity and real estate investments by a combined $675 million to meet the 5% target; no timetable was established for the increase, he said. The overall target comprises 3.5% in private equity and 1.5% in real estate, up from a combined 0.5% for both asset classes now.
The retirement fund will work with Mercer Investment Consulting, its general consultant, and Strategic Investment Solutions, its alternative investment consultant, to identify private equity managers. It could also look for a real estate consultant to assist in searching for real estate managers, Mr. Adams said.