Illinois Teachers adds $1.1bn across various alts strategies

The Teachers’ Retirement System of Illinois (Illinois TRS) made seven allocations across six managers in a $1.1 billion build-out of its alternative investment allocations across its $52 billion portfolio. The mandates were spread across the system’s private equity, global income and real asset portfolios and come as the board has chosen StepStone Group as its investment consultant for private equity opportunities. The La Jolla, California-firm’s five-year contract begins on January 1, replacing incumbent consultant TorreyCove Capital Partners. StepStone was also re-hired to advise on Illinois TRS’ real estate and real asset investments with a five-year contract that is also slated to begin in January. Within the $6.3 billion private equity portfolio, RCP Advisors and SK Capital Partners were hired to manage $125 million and $44 million respectively after winning previous mandates from the state pension. Two separate commitments were made to Exeter Property Group, one of $222 million and another one for $100 million. The Conshohocken, Pennsylvania-based firm already manages $29 million in Illinois TRS assets within its $8.1 billion real assets portfolio. New York firms Apollo Global Management and Solar Capital were each chosen for mandates within the $14.4 billion global income portfolio, which invests in fixed-income assets. Apollo won a $125 million mandate and currently runs $524 million of the pension fund’s assets. Illinois TRS tapped Apollo’s private credit strategy back in 2016. Solar Capital received a $50 million commitment from Illinois TRS and already runs $175 million for the system. Back in October 2017, the board approved a $125 million commitment to Solar Capital Partners’ Private Corporate Lending Fund platform. That mandate was a combination commitment to a separately managed account and a commingled fund. Also, within the global income portfolio was a $392 million allocation to an emerging market debt opportunities strategy run by Franklin Templeton, which already oversees $766 million in Illinois TRS assets through another strategy. Photo credit: Daniel Schwen/CC BY-SA 4.0 via WikiMedia Commons

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