Illinois State Board of Investment, Chicago, committed at total of $40 million to three private equity funds, said William R. Atwood, executive director.
ISBI, which oversees $12.6 billion in defined benefit assets, committed $20 million to KPS Special Situations Fund IV, a private equity fund, focused on deep-turnaround buyouts and managed by KPS Capital Partners.
Also, it committed $10 million to domestic and international commingled funds in venture capital managed by Franklin Park, ISBI's private equity consultant.
Franklin Park manages the two funds on a discretionary basis.
“The purpose of it is to make small investments,” Mr. Atwood said. “Venture capital funds open and close quickly, and it's difficult for the board to make decisions” on a timely basis needed for such investments. As a result, Franklin Park has discretion for those commitments.
Franklin Park also assisted ISBI in the search and due diligence resulting in the commitment to KPS fund, Mr. Atwood said.
ISBI has a 5.1% private equity allocation, just above its 5% target.
