Updated with correction
Illinois Teachers' Retirement System, Springfield, committed or invested a total of $1.5 billion to alternative investment strategies managed by nine investment managers.
Officials of the $52.7 billion defined benefit plan who have investment discretion informed trustees about the commitments and investments they made during an investment committee meeting Monday and Tuesday.
Commitments totaling $1.25 billion were awarded from the fund's $2.2 billion private debt portfolio.
The fund's investment officers asked trustees during the investment committee meeting to approve commitments of $500 million each to two new managers to the fund, Hayfin Capital Management and Intermediate Capital Group for separately managed multistrategy private credit strategies. Trustees approved the hirings of both managers and the full board ratified the decision during its meeting Tuesday.
Another commitment made from the private credit portfolio by staff was a $125 million commitment to new manager Cerberus Capital Management for investment in Cerberus Real Estate Debt Fund. Existing manager, Beach Point Capital Management, received an additional $125 million commitment bringing the total it manages in a private credit separate account for TRS to $215 million.
Two macro managers in the fund's $5.5 billion diversifying strategies portfolio received additional investments, with $100 million going to Kirkoswald Capital Partners' Kirkoswald Global Macro Fund, bringing the total managed for TRS in the fund to $300 million. Brevan Howard Asset Management received an additional $50 million for investment in the Brevan Howard Systematic Trading Fund, raising the total managed in the fund for TRS to $223 million.
In other changes to the diversifying strategies portfolio, which includes hedge funds, risk-parity and alternative risk premium investments, KeyQuant was terminated for management of $75 million in Key Trends 15 Fund, a quantitatively managed macro fund.
The investment team also redeemed $200 million from its $460 million investment in Bridgewater Associates' Optimal strategy. The Bridgewater allocation remains evenly split between the risk-parity and systematic macro portfolios within the diversifying strategies pool with $130 million in each.
Reasons for the redemptions were not provided by investment staff during the investment committee meeting.
Two commitments were made to managers from the fund's $7.2 billion private equity portfolio with $24 million earmarked for investment in Sunstone Partners II, a tech-focused growth equity fund. TRS committed $19 million to the previous fund in the Sunstone Partners' fund family.
Zelnick Media Capital received its first commitment from the teachers' fund with $45 million for ZMC III, which will seek investments in media and communications companies.
Existing real estate manager Exeter Property Group was awarded a $60 million commitment to Exeter Industrial Core Fund III as part of its graduation from the firm's $549 million emerging manager program to full portfolio manager status. The firm manages $29 million for TRS in Exeter Value Fund IV.