(updated with correction)
The $33.5 billion Illinois Teachers' Retirement System, Springfield, ratified private equity co-investment commitments of $23.5 million in Emdeon Inc., a health-care payment systems provider, and $45 million to Summit Midstream Partners, a gas pipeline developer, made by the system's investment staff on the advice of Houlihan Lokey.
With the new investments, Illinois Teachers' co-investment program commitments and investments total about $177 million, bringing the program close to its goal of reaching $200 million by the end of the fiscal year on June 30.
The system is close to issuing an RFP to add a fourth adviser for its private equity co-investment program.
Also in private equity, the board committed of up to €50 million ($66 million) to Rhone Partners IV, which invests in middle-market Pan-European and transatlantic companies.
Trustees accepted the recommendation of Zak Doehla, senior investment officer-private equity, to renew TRS' venture capital investment program, which has been quiet for the past three and a half years.
In order to bring the fund's venture capital exposure closer to the 10% upper limit of the target allocation for the asset class, Mr. Dohla said between $75 million and $125 million will be invested over the next three years.
As of Sept. 30, the system had $835 million, or about 2.5% of total assets, invested in venture capital strategies, according to board meeting materials.
Trustees approved the first step in the venture capital ramp-up with a commitment of up to $100 million in Morgan Creek Partners Venture Access Fund I, a customized separate account fund of funds.
Illinois Teachers' private equity investments, including venture capital, totaled $3.7 billion as of Sept. 30, according to board presentation materials from the fund's general consultant, R.V. Kuhns & Associates.