Alfie Crooks

The pension fund has run a $4bn per year deficit and is hoping to remedy the cash drain with its new commitment plan.

This marks the first cut the pension has made to the asset class's target in more than 15 years.

The pension will grant its adviser the discretion to manage its investments in Clearlake Capital Partners, including the ability to liquidate the assets via the secondaries market.

The potential adoption of this strategy follows in the footsteps of CalPERS, which implemented a total portfolio approach this past November.

Chris Eckerman, who had spent the past 12 years at SWIB, will lead up TPSF’s efforts to expand into the co-investment space.

With some of US’s largest private equity allocators set to publish their FY 2025 returns, early reports paint a curious but hopeful picture of the investment landscape.

The LP may look to err on the side of caution as it looks to commit between $600m and $1bn to the asset class.

While the pension has been a net buyer of secondaries in the past, poor distributions from private equity assets in these particular vintage years would cause the LP to look at opportunistic sale processes of certain managers.

Despite the uncertain landscape, ILPA’s senior leadership insists that its members are sticking to their current portfolios and taking a long-term outlook on the volatility.  

GPs may begin to pare back their co-investment offerings as appetites shrink among investors.