Investment officers of the $64.8 billion Teachers Retirement System of Illinois, Springfield, shifted a total of $970 million to nine investment funds between board meetings, according to a report from a board of trustees' meeting on June 8.
The largest aggregate allocation by strategy was $455 million directed to five firms from the system's $10.9 billion private equity/venture capital asset class.
Existing manager Parthenon Capital Partners received the largest commitment — $200 million — for investment in Parthenon Investors VII, a growth equity fund. Prior to the new commitment, Parthenon managed $503 million for TRS.
Clayton, Dubilier & Rice, a new manager for the system, was awarded a $150 million commitment earmarked for investment in Clayton, Dubilier & Rice Fund XII, a buyout fund.
Bertram Capital, an existing manager which previously managed $73 million for TRS, received a $75 million allocation for investment in Bertram Capital V, a buyout fund.
FVLCRUM, a new private equity firm for the teachers' fund, was allotted $25 million for investment in growth equity, management buyouts and other strategies. The firm is a minority/women-owned business enterprise and will participate in the TRS emerging managers program, the report said.
Another new manager for TRS in the private equity/venture asset class is Alkemi Growth Capital, a venture capital firm that targets healthcare opportunities in India. TRS investment officer committed $5 million to Alkemi Venture Fund II.
As of March 31, the Illinois Teachers plan's actual allocation to private equity and venture capital was 16.8% of total plan assets compared to the system's long-term target of 15%.
From the system's $12.5 billion real assets portfolio, a total of $315 million was committed to two existing managers.
Fortress Investment Group received a total commitment of $215 million with $115 going to Fortress Japan Opportunity Fund V and $100 million to Fortress Real Estate Opportunities Fund IV. Both Fortress funds are real estate funds.
Fortress Group is an existing manager for TRS and previously managed $503 million.
The system's investment officers committed $100 million to Brasa Real Estate Fund III, an opportunistic U.S. real estate fund. Brasa Capital Management is an existing manager for TRS and previously managed $30 million for the system.
As of March 31, TRS' actual allocation to real assets was 19.3% compared to 18% for the system's long-term target for the asset class.
Investment officers committed a total of $200 million split evenly between two managers from the system's $15.3 billion total income fund.
Existing manager Pacific Investment Management Co. received $100 million for investment in PIMCO Corporate Opportunities Fund, a distressed debt fund.
PIMCO previously managed $2.1 billion in other strategies for TRS.
Taurus Funds Management's $100 commitment will be invested in Taurus Mining Royalty Fund, which will provide project and acquisition finance to emerging mining and metal companies.
Taurus is an existing manager for TRS and previously managed $61 million for the system.
As of March 31, the system 's actual allocation to real assets was 23.5% compared to 26% for the fund's long-term target.
From the system's $3.5 billion diversifying strategies portfolio, investment officers terminated a $200 million investment in Maniyar Macro Fund, which was managed by Maniyar Capital Advisors.
The board's report did not provide a reason for eliminating the Maniyar hedge fund from the portfolio.
As of March 31, the actual allocation to the diversifying strategies portfolio was 5.4% compared to the system's 4% long-term target.
In other news, the board of trustees approved rehiring the system's general consultant RVK for a new five-year contract beginning July 1, said David Urbanek, TRS' spokesman in an email.
RVK has served as TRS' general consultant since 2006.
