Chicago Teachers’ outlines PE plans

The US public pension will commit $75m from its private equity portfolio in 2020.

Institution: Chicago Teachers’ Pension Fund
Headquarters: Chicago, United States
AUM: $10.70bn
Allocation to alternatives: 12.20%
Bitesize: $10-50m

Chicago Teachers’ Pension Fund has outlined its private equity portfolio plans for 2020, a contact at the pension informed Private Equity International. Chicago Teachers’ is seeking to commit $75 million to the asset class in the calendar year, with the allocated capital split across three vehicles.

Firstly, the pension is on the lookout to commit $30 million to a MWDBE (Minority, Women, and Disadvantaged Business Enterprise)-led private equity manager. The manager in question is required to offer closed-end, commingled private equity fund opportunities, according to an RFP on the pension’s website.

Potential funds on offer for this capital allocation must be focused on either growth, lower-middle market buyout, co-investment, distressed or special situations strategies. At present, secondaries fund vehicles will not be considered.

Chicago Teachers’ is also seeking to commit $25 million in capital to an existing private equity manager. It is unclear which strategies this commitment will focus on.

Finally, the pension is targeting a new special situations fund manager and has an issued an RFP. Further details regarding fund specifics are unclear, though it is known that $20 million will be allocated to this strategy.

As illustrated below, Chicago Teachers’ last commitment to a private equity fund was $25 million to Aberdeen Standard’s 2019-vintage Flag Venture Partners XI.

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