The Illinois State Board of Investment has committed $105 million (€67 million) to private equity funds as the pension pursues its 5 percent target allocation to the asset class.
The public pension committed $35 million each to three private equity funds: Blackstone’s sixth fund targeting $20 billion according to the Probitas Partners 2008 Private Equity Deskbook, Riverside’s fifth middle market general fund which recently held a second close on $550 million en route to a $900 million target and Welsh Carson Anderson & Stowe XI. Welsh Carson, which focusses exclusively on information and business services and healthcare, held a first close this month on $2.5 billion and expects to close on $4 billion by the end of the year.
For the month of June, the State Board of Investment reported a loss of 4.9 percent, bringing assets to $11.4 billion. The board manages investments on behalf of public pension funds including the General Assembly Retirement System, Policemen's Pension Fund, Firemen's Pension Fund, Policemen's Annuity and Benefit Fund, Firemen's Annuity and Benefit Fund and Illinois Municipal Retirement Fund.
Of total assets under management, 4.7 percent is invested in private equity with a target of 5 percent. The pension fund commits to North American private equity funds of all types, although around two-thirds of the portfolio consists of buyout vehicles, while the remainder consists of venture capital and special situations, according to sister data service Private EquityConnect.