Illinois State Universities Retirement System, Champaign, plans to issue an RFP in October for a manager of a private equity fund of funds made up of underlying, emerging managers to run a total commitment of $100 million, said Daniel L. Allen, chief investment officer, in an e-mail.
SURS, which oversees $16.5 billion in defined benefit assets, is doing the search to move closer to its 6% private equity target allocation from its actual 5.8% allocation, as well as increasing the use of emerging managers.
The RFP will seek a manager that uses underlying funds managed by minority-, women- or disabled-owned emerging managers. It will be posted on SURS' website.
Separately, SURS named four finalists in its search for a hedge fund-of-funds manager: Grosvenor Capital Management, KKR Prism, Pacific Alternative Asset Management Co. and Pluscios Management.
SURS, which is making its first move into hedge funds, plans a 3% or $495 million, allocation as determined in its asset-liability study last year.
The hedge fund-of-funds RFP was issued in March.
In addition, SURS rehired both Fidelity Investments and TIAA-CREF as bundled providers for its $1.6 billion 401(a) defined contribution plan. SURS issued an RFP for bundled providers in May to gauge the marketplace for the services.
Fidelity oversees $954 million in the plan, offering 11 of its own funds and five by other investment management firms. TIAA-CREF oversees $655 million in the plan, offering 11 funds, all propriety.
Under state statute, the plan has to use at least two bundled providers.