Chicago Policemen's Annuity & Benefit Fund soon will be invested again in private equity after trustees approved the hire of two managers.
Glendower Capital and HarbourVest Partners each were awarded $25 million commitments for investment in private equity secondary funds at a Feb. 27 board meeting, confirmed Thomas A. Beyna, a Chicago police officer, president of the board and chairman of the investment committee for the $2.5 billion pension fund, in an email.
Both managers are new relationships for the pension fund.
The other finalists in the search were Adams Street Partners, Auldbrass Partners and Coller Capital.
The pension fund's investment consultant, NEPC, assisted with the search.
The pension fund largely exited private equity about two years ago because pension fund's liquidity was tight.
An Illinois state statute mandates that the pension fund receive actuarially determined contributions beginning in 2021, which will improve the pension fund's liquidity profile, Mr. Beyna said.
The pension fund's target allocation to private equity is 5%; the current actual allocation is 0.8%.