Illinois Teachers' Retirement System, Springfield, hired TCW Group to run $350 million in emerging markets debt, confirmed spokesman David Urbanek.
Funding is coming from rebalancing; no managers will be terminated, Mr. Urbanek said. An RFP was issued in February.
The $39.4 billion pension fund also committed up to $420 million total to three private equity funds — up to $300 million to Apollo Investment Fund VIII, managed by Apollo Global Management; $100 million to New Mountain Capital Partners IV; and up to $20 million to ICV Partners III.
Apollo currently manages $416 million for TRS; New Mountain, $100 million; and ICV, $20 million.
Separately, the board approved making $600 million in real estate commitments for fiscal year 2014, which started July 1.
Also, Franklin Templeton Investments' $421 million emerging markets debt strategy was removed from the watchlist.