Illinois Municipal Retirement Fund, Oak Brook, on Friday approved committing a total of up to $210 million to two private equity funds and two value-added real estate funds.
The $36.3 billion pension fund committed up to $75 million each to Crow Holdings Realty Partners VIII, managed by Crow Holdings Capital Partners, and Oak Street Real Estate Capital Fund IV.
The pension fund previously committed $75 million to Crow Holdings Realty Partners VII and $25 million to Oak Street Real Estate Capital Fund III.
Also, up to $35 million was committed to EnCap Energy Capital Fund XI, a U.S. oil and gas fund managed by EnCap Investments, and up to $25 million to ABRY Partners Senior Equity V, a middle-market fund whose investments include media and communications companies managed by ABRY Partners.
IMRF has committed a total of $63 million to six previous EnCap funds and a combined $117 million to three other ABRY funds.
Illinois Municipal has a 3.5% actual allocation to alternatives, including private equity, with a current 9% target. As of Jan. 1, its alternatives target will be trimmed to 8% under a new asset allocation approved Nov. 18. IMRF has 5.2% in real estate; its current 8% real estate target will be unchanged under the new asset allocation.
Also, the IMRF board approved hiring FactSet Research Systems as the pension fund's first external risk management service provider, pending successful contract negotiations. BlackRock Aladdin was selected as a standby provider should negotiations with FactSet prove unsuccessful; hiring BlackRock would require separate board approval.
Dhvani Shah, IMRF’s chief investment officer, said a risk management provider “is an additional means to aid in the understanding and decomposition of risk” in its investment portfolios, particularly in private equity, real estate and more complex fixed income.
An RFP for the provider was issued Aug. 8.
The commitments and hiring were recommended by the board’s investment committee at a meeting Thursday.
Also on Friday, the board approved a diversity report from Ms. Shah that shows that as of Sept. 30, $7.2 billion in assets was managed by minority- or women-owned firms, up from $6.2 billion a year earlier.
The largest asset class with such managers was in fixed income, with $3.44 billion managed by minority- or women-owned firms, while $1.58 billion was in international equity, $1.45 billion in U.S. equity, $504 million in private equity, $217 million in real estate and the remainder in a hedge fund portfolio that is being liquidated.