Teachers Retirement System of Louisiana, Baton Rouge, plans to commit between $450 million and $600 million to private equity this year, said Phil Griffith, deputy CIO. It will hire five to seven funds, bringing the $14.7 billion systems combined target corporate finance and venture capital allocation to 10% from the current 8% commitment. System officials have already made one hire, committing up to $75 million to Carlyle Partners V, a private equity fund. Funding will come from cash. Hamilton Lane Advisors, the funds private equity consultant, assisted in an invitation-only search.
Fund officials also plan to make additional commitments of $200 million to $300 million to real estate and $50 million to $100 million to mezzanine debt this year by the end of the year. Funding will come from reducing domestic and international equity allocations, but its too soon to know which portfolios will be affected, Mr. Griffith said.