Chicago Municipal seeks secondary fund of funds

The $5 billion pension fund has raised its private equity allocation to 10 percent from 3 percent.

The Chicago Municipal Employees’ Annuity and Benefit Fund issued a Request for Information (RFI) for a secondary private equity fund of funds, according to documents on the fund’s website. The $5 billion pension fund covers employees from the city of Chicago and the Chicago board of education.

The RFI did not specify the size of the mandate, nor the annual fee structure summary. Interested parties should contact the fund’s investment consultant, Marquette Associates. The RFI also did not include a deadline.

Jim Mohler, chief investment officer, could not be reached by press time.

The fund’s asset allocation as of 31 Dec. was 4 percent real estate and 3 percent each for private equity and short-term investments, 34 percent domestic equities, 24 percent fixed income, 22 percent international equities, and 10 percent hedged equities. The fund’s target allocation is 10 percent each for private equity, real estate, and hedged equities.

Chicago Municipal currently has $134 million in private equity invested with the following firms: Mesirow Financial, SB Partners, Hopewell Ventures, First Analysis, Carpenter Community Banc Fund, Muller & Monroe Asset Management, Citi Alternative Investments, MK Capital, Invesco, Adams Street Partners, Hispania Capital Partners, and Nogales Investors.