Chicago Public School Teachers' Pension & Retirement Fund will soon launch a search for private credit managers.
The $11.9 billion pension fund's board at its Sept. 21 meeting approved issuing an RFP to begin populating its new private credit asset class, said spokesperson Michelle Hollman.
The timing of the RFP and the amount to be committed at first has yet to be determined.
The board approved creating the new 3% target allocation in March, which is being funded by a reduction in the target to international equities to 20.5% from 27.5%. The board at that time also increased the targets to domestic equity and fixed income to 31% and 26.5%, respectively, from 30.5% and 23%.
Investment consultant Callan will assist with the search. Callan proposed commitments to open-end core funds in the initial three years to build to the target, while also making commitments to opportunistic closed-end funds, according to a memo to the board from CIO Fernando Vinzons and James Binsfied, senior investment analyst.
The pension fund is expected to make one to four commitments totaling $50 million to $150 million per year over the next 10 years, the memo said.