Institution: Chicago Teachers’ Pension Fund
Headquarters: Chicago, United States
Allocation to alternatives: 12.20%
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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