Illinois Teachers' Retirement System, Springfield, invested or committed a total of $450 million to four alternative investment strategies at a board meeting Friday.
Board trustees committed $150 million to MBK Partners IV, a buyout fund that will focus on investments in South Korea, Japan and China. The $45.6 billion pension fund has $196 million invested in MBK Partners II and III funds and two co-investments.
Another commitment from the pension fund's $5.6 billion private equity portfolio was $100 million to Trident VII, managed by Stone Point Capital. The fund focuses on investments in financial services companies, primarily in the U.S. The pension fund has $204 million invested in Trident V and VI and two co-investments.
TRS trustees also approved investments in two alternative investment strategies from the fund's $8.9 billion global fixed-income portfolio.
Angelo Gordon & Co.'s AG Direct Lending Fund II received a $100 million commitment. The fund specializes in lending to middle-market companies. TRS doesn't have any current investments with the manager.
J.P. Morgan Global Maritime & Transport Fund was awarded a $100 million commitment, with the first $50 million to be invested this year and the remainder in about a year, said Scottie Bevill, senior investment officer for fixed income, during the fund's investment committee meeting Thursday. The fund, managed by J.P. Morgan Asset Management, provides financing globally for large-ticket shipping assets.
Separately, Benjamin C. Skrodzki was introduced as investment officer-global equity. He started earlier this month, replacing Chuck Handy, who retired in April. Mr. Skrodzki will assume coverage of international equity over time, said Greg Turk, director of investments. Mr. Skrodzki was an investment analyst at Ogorek Wealth Management.
TRS also provided final fiscal-year-end net returns, which trailed those of its benchmark for all periods ended June 30: one year, 0.01% (benchmark, 2.44%); three years, 6.87% (7.62%); five years, 6.77% (7.52%); and 10 years, 5.43% (5.91%). Multiyear returns are annualized.
