TRS invests in PE, eyes opportunistic real estate

The $30 billion Teachers’ Retirement System of the State of Illinois (TRS) will commit up to $1.2 billion to private equity, and will focus on opportunistic investments in real estate including emerging manager initiatives, as it aims to reach its new long-term allocations in those sectors by year end.

In real estate, where there is also a search underway for a consultant, the fund has a new strategic target of 14 per cent.

In private equity the new allocation will see an increase from 8 to 10 per cent of the fund, and the board has approved a tactical plan for the fiscal year that calls for commitments of between $700 million and $1.2 billion during the next year.

TRS hired an alternative investments officer, Zak Doehla, in June who will oversee the private equity portfolio which includes nearly 70 private equity relationships.

The fund has undergone a number of organisational changes, with a new law enacted in the summer which terminated the employment of TRS executive director, Jon Bauman, a provision that the fund was not consulted about in the final days before the law was approved.

Sponsored Content

The chief investment officer, Stan Rupnik, is acting exective director and there is a search underway for a permanent executive director under search firm, Hudepohl & Associates.

That law also saw the termination of three trustees, and six new trustees have been appointed.

The fund is also looking for a global macro and global large cap manager.

Leave a Comment

Sort content by

CalPERS flooded with consultant RFPs after changes to wish-list

CalPERS has received 17 applications in response to its RFP for a general pension consultant services spring-fed pool – four times the applications of its last review – and will select consultants during its April 20 investment committee meeting. mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3

Endowment model endures despite alternatives pain: Cambridge

As Harvard Management Company (HMC) begins shedding 25 per cent of its workforce after incurring a 22 per cent loss since the beginning of the financial year, its investment consult, US firm Cambridge Associates, says the “endowment model” is not impaired. mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3

ABP to submit recovery plan as coverage ratio falls 50%

ABP, the world’s third largest pension fund, faces serious underfunding as a result of the financial crisis and will have to submit a recovery plan to De Nederlandsche Bank by March 31. mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3

Australian Future Fund takes piece of private equity giant

The A$60 billion Australian Future Fund has joined other global investors, taking a stake in one of the world’s largest private equity firms. mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3

GFC fallout hits funds as AP2 reports losses

Andra AP-fonden, Sweden’s Second Swedish National Pension Fund (AP2) has taken a big hit from the turmoil in global markets, its capital value falling by SEK55.1 billion ($US6.6 billion) in 2008. mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3

Qatar Investment Authority chief warns banks to open up

The Qatar Investment Authority (QIA) is looking closely at taking stakes in banks across the US, Europe and Asia but its chief executive, prime minister, Sheik Hamad Al-Thani, warns banks to be open if they want to have meaningful relationships with sovereign wealth funds. mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3

Previous