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

European distressed debt: investors divided by volatility

Last month conexust1f.flywheelstaging.com hosted a thinktank with a group of influential Australian investors to discuss the opportunities in European distressed debt. Participants included the Australian Government’s $80 billion sovereign wealth Future Fund, the $68 billion QIC, and leading asset consultants, with guest speaker sir David Cooksey, former board member of the Bank of England, chairman

Governance, Gonski style

Since becoming chair of the $80-billion Future Fund in March, David Gonski has set an agenda to act like a public company chair. An element of that vision is to very clearly delegate to management. “The general manager has been elevated to a managing director and the six-monthly announcements will be his,” he says. Another

Risk parity manages risk regret

The risk parity approach to portfolio construction might not deliver results in a “bull stockmarket,” but remained a “robust and rigorous” methodology which also “managed risk regret over time.” These are the views of Wai Lee, chief investment officer of quantitive investment at New York-based fund manager Neuberger Berman, who was recently named winner of

African countries come to the sovereign wealth fund party

Many of the countries with the largest oil reserves also boast the largest sovereign wealth funds (SWFs). And yet African producers, like newcomer Ghana, Angola, and Nigeria which has been pumping oil since the 1950s, haven’t saved much of their oil revenue. Now, in an effort to replicate the long-term growth of funds like Norway’s

Regulatory risk in Europe a factor for infrastructure investment

The head of infrastructure at Australia’s $80 billion Future Fund has cited regulatory risk in Europe and the United Kingdom as reasons to be wary about infrastructure investment in the region. Raphael Arndt, the Future Fund’s head of infrastructure and timberlands, told a Sydney conference this week that he was particularly concerned with the situation

Europe’s credit rating crunch

It has been a bad month for credit-rating agency executives who thought they were winning the legal and regulatory arguments about how they conduct their business. In Australia, the Federal Court ruled on November 5 in favour of 12 local councils in New South Wales which claimed that Standard and Poor’s had misled them into

Previous