Chicago Public School Teachers' Pension & Retirement Fund has launched its search for its first private credit managers to manage a total of $350 million, said Fernando Vinzons, chief investment officer.
The $11.9 billion pension fund is seeking managers that offer a diversified evergreen or draw-down structure private credit fund with a minimum fund size of $500 million, according to an RFP on its website. The pension fund will not consider secondaries, trigger funds or niche strategies, according to the RFP.
The pension fund's board originally approved at its Sept. 21 meeting a search to begin before the end of 2023. This would start the build-out of its new private credit asset class.
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%.
The RFP is available on the pension fund's website. Proposals are due at 4 p.m. CST on Jan. 19. A timeline for a selection has yet to be determined.
Investment consultant Callan is assisting.
