Illinois Teachers' Retirement System, Springfield, will commit $700 million to $1.2 billion next year with between nine and 16 funds as part of the 2010 tactical private equity investment plan approved by trustees on Thursday.
Investment focus will be on developing programs for the purchase of secondaries and co-investments; increasing credit and small- to midmarket funds; and aggressively negotiating legal terms.
Separately, trustees at the $29 billion system voted to exit from the Short-term Extended Cash Portfolio of its former global custodian, Northern Trust, which stopped redemptions in September 2008 after credit problems impaired some of the securities in the fund.
The system still has about $279 million of assets in the fund and any in-kind securities received as part of its withdrawal will be managed by existing fixed-income managers Prudential, PIMCO, Franklin Advisors and Dolan McEniry. CIO Stan Rupnik told trustees that the exact amount each manager may receive has not been determined.
Separately, CB Richard Ellis Valuations & Advisory Services and U.S. Realty Consultants were hired as appraisers for the system's real estate separate accounts.