Illinois State Board of Investment, Chicago, hired Hamilton Lane Advisors as private equity consultant and allocated a total of more than $500 million to three managers, said Marc Levine, board chairman.
Hamilton Lane replaces Franklin Park Associates, which did not submit a bid in an RFP issued in April.
The search was the result of ISBI doubling its private equity target allocation to 10% from 5% for the $15.5 billion in defined benefit assets it oversees. The doubling was part of a new asset allocation investment consultant Meketa Investment Group recommended and ISBI adopted in February,
ISBI expects the new consultant to assist in developing and diversifying the private equity portfolio, William R. Atwood, executive director, said at the time the RFP was issued.
Separately, ISBI hired State Street Global Advisors to manage $360 million in passive emerging markets debt, tracking the J.P. Morgan Emerging Markets Bond Index Global Diversified, and Payden & Rygel to manage $100 million in active emerging markets debt, Mr. Levine said.
RFPs were issued in March. Meketa assisted.
Also, ISBI committed $50 million to H/2 Special Opportunities IV, a real estate fund managed by H/2 Capital Partners, said Johara Farhadieh, ISBI deputy executive director, in an e-mail. Real estate consultant Courtland Partners assisted.
On behalf of the $4.1 billion Illinois State Employees' 457 Deferred Compensation Plan it oversees, ISBI added Vanguard Group's Vanguard Treasury Money Market Fund as an investment option in the plan.
It replaces the Vanguard Prime Money Market Fund, whose $36 million from participants will be mapped to the new fund.
Explaining why ISBI dropped the prime fund, Ms. Farhadieh said, “Due to the (Securities and Exchange Commission's) recent amendments, the fund could impose redemption gates and liquidity fees during times of stress. In addition, the current record keeper (T. Rowe Price Group) is unable to support such fees and gates.”
An RFP was issued in May. Meketa assisted.