Illinois State Board of Investment, Chicago, named finalists in its private equity consultant and other searches, confirmed William R. Atwood, executive director.
For private equity consultant, Cambridge Associates and Hamilton Lane Advisors were named finalists. Incumbent Franklin Park Associates did not submit a bid, although it was eligible to do so, Mr. Atwood said.
ISBI issued an RFP in April as the result of the board doubling its private equity target allocation to 10%, or $1.4 billion, from 5% for the $15.5 billion in defined benefit assets it oversees. The doubling was part of a new asset allocation ISBI adopted in February,
The board could hire more than one consultant. “The board is free to take whatever action it wants to take,” Mr. Atwood said.
For active emerging market debt, Payden & Rygel Investment Management and BlueBay Asset Management were named finalists to manage a total of $460 million. The board could hire more than one manager.
For passive emerging market debt, State Street Global Advisors was named as the only finalist to manage $460 million, tracking the J.P. Morgan Emerging Markets Bond Global Diversified index.
Emerging markets debt RFPs were issued in March.
For the $4.1 billion Illinois State Employees’ 457 Deferred Compensation Plan overseen by ISBI, Vanguard Group was named as the only finalist to manage a money market fund.
Vanguard was the incumbent, managing a $36 million portfolio for the 457 plan. ISBI dropped the Vanguard Prime Money Market Fund institutional shares for being incompatible with the platform of T. Rowe Price Group, the record keeper for the plan.
An RFP was issued in May. Vanguard was allowed to rebid with a money market fund that meets T. Rowe Price’s qualifications.
ISBI plans to benchmark the money market fund to 90-day Treasury bills, according to the RFP.
The investment policy committee and board are scheduled to meet Thursday to make hiring decisions.
Meketa Investment Group, ISBI’s investment consultant, is assisting with the changes.
