Illinois Teachers Retirement System's investment staff informed trustees of up to $5.1 billion in commitments and investments in 26 traditional and alternative investment strategies from February to May this year during a June 16 board meeting, according to a news release.
The $66.1 billion Springfield-based pension fund's investment staff has discretion to invest with and commit to money managers.
TRS' largest allocation by asset class was up to $1.9 billion to 11 managers from the retirement system's $13.7 billion global income portfolio, the news release said.
The largest investment from the portfolio was to Payden & Rygel, which was hired to run $350 million to $400 million in an emerging markets debt strategy. The firm is a new manager for TRS.
Existing manager Cerberus Capital Management was awarded a $150 million commitment to Cerberus Real Estate Debt Fund II. Cerberus manages $420 million in other strategies for TRS.
New manager Pharmakon Advisors and existing manager Edelweiss Alternative Asset Advisors each received $100 million commitments for Pharmakon BioPharma V and Edelweiss India Special Assets Fund III, respectively. Edelweiss manages $23 million for TRS.
Existing manager Dignari Capital Partners received a $75 million commitment to DCP Asia Credit Fund III. The firm manages $23 million for the pension fund.
Investment officers committed $25 million to new manager L2 Point Management for L2 Point Opportunities I.
Five of the system's existing fixed-income managers were awarded additional allocations to current funds with the largest addition — $250 million — going to Apollo Lincoln Fixed Income Fund, a separate account managed by Apollo Global Management. Assets in the fund totaled $502 million prior to the additional allocation. Apollo manages a total of $851 million for the pension fund.
Pacific Investment Management Co. and Intermediate Capital Group each received an additional allocation of $225 million. PIMCO Horseshoe Fund, a separately managed account, had $652 million in the fund prior to the addition. PIMCO manages a total of $2.2 billion for TRS in various funds. The commitment to Intermediate Capital Group is to the firm's ICG Santo fund. The firm managed $440 million in the strategy prior to the new addition, a report from TRS said.
Other fixed-income strategies receiving additional allocations from the pension fund's global income portfolio were Hayfin Capital Management, which was given a $200 million follow-on allocation to Hayfin Chief, a separately managed account . Assets under management in the strategy totaled $269 million prior to the addition.
Beach Point Capital Management was given an additional $150 million to run in Beach Point Sangamon, a separate account. Beach Point's AUM in the fund was $434 million before the additional commitment.
From TRS' $22.5 billion public equity portfolio, four managers were hired to run $400 million each, the release said.
Three of the managers are new for the retirement system: Causeway Capital Management will run the allocation in international large-cap value equities; T. Rowe Price Associates, global all-cap growth equities; and William Blair & Co., international all-cap growth equities.
Existing manager J.P. Morgan Asset Management will run its allocation in U.S. all-cap growth equities, JPMAM manages $840 million in other strategies for the pension fund.
From the public equity portfolio, TRS investment officers terminated a $307 million U.S. large-cap value equities portfolio managed by LSV Asset Management. The firm continues to manage $1.5 billion in other strategies for TRS.
Two passive strategies managed by RhumbLine Advisers were terminated with $222 million coming from a Russell midcap growth mandate and $158 million from a Russell 1000 growth mandate. RhumbLine continues to manage $9.9 billion for the retirement system.
A total of up to $1.2 billion was committed to eight existing and one new manager from the pension fund's $10.4 billion private equity portfolio.
The largest commitments — $200 million each — were to three existing managers: EQT Fund Management's EQT X; RCP Advisors' RCP SBO Fund III; and Veritas Capital Fund Management's Veritas Capital Fund VIII. EQT manages $430 million for TRS; RCP manages $750 million; and Veritas manages $550 million.
Arlington Capital Partners VI received a $150 million commitment. The firm manages $90 million for TRS.
Existing manager Advent International was awarded a commitment of up to $125 million for Advent International GPE X. Advent manages $230 million in other funds for the pension fund.
SK Capital Partners VI received a $125 million commitment. The firm manages $120 million in other funds for the retirement system.
Francisco Partners Fund VII received a $100 million commitment. Francisco Partners is a new manager for TRS.
Existing manager Providence Strategic Growth Capital Partners received a $79 million commitment to Providence Strategic Growth Europe III. The firm manages $75 million for TRS.
TRS' private equity team committed an additional $14 million to Grain Management's Grain Communications Opportunity Fund II. The firm manages $119 million for the pension fund.
From the retirement system's $10.7 billion real estate portfolio, existing manager Blackstone was awarded a commitment of up to $300 million for Blackstone Real Estate Partners X; while Gaw Capital Partners, another existing manager, received a commitment of up to $100 for Gateway Real Estate Fund VIII. Blackstone manages $776 million in other strategies for TRS, while Gateway manages $50 million for the pension fund.
The investment team terminated its $250 million allocation to Light Sky Macro Fund from the retirement system's $4.9 billion diversifying strategies portfolio, which includes hedge funds, risk-parity and other strategies.
