Illinois hires Fairview for emerging manager programme

The $13.6bn state pension fund has hired the fund of funds manager to run the $75m investment programme.

The State Universities Retirement System of Illinois has hired Fairview Capital Partners to operate its emerging manager private equity programme, according to SURS' investment department.
The system has allocated $75 million to the programme, according to the investment department. The Manager Diversity Programme focuses on committing capital to firms owned by minorities, females or persons with disabilities, according to the system’s fiscal year Agenda 2013 Investment Plan.
SURS’ goal is to allocate 10 percent of new private market commitments to these firms. This allocation is in accordance with Illinois General Assembly legislation, Private Equity International previously reported.
SURS’ search for an emerging fund of funds manager began last September, but the request for proposal wasn’t completed until December. It is not clear whether Fairview Capital is replacing another firm.
SURS has had an established policy to increase the participation of emerging minority and women-owned firms since 1992, according to 2009 meeting minutes from SURS’ Senate Committee on Pensions and Investments.
In 2004, SURS launched its official Emerging Manager Programme, which includes 18 fund managers, according to SURS documents. The programme controls about $1.2 billion, covering equities, core fixed income, TIPS and private equity managers, PEI reported earlier.

As an LP, SURS allocates $1.1 billion or 8.3 percent to private equity but is targeting 6 percent, according to the Investment Plan. SURS’ Board approved a three-year private equity funding plan, for the system to commit $300 million in 2012, $100 million in 2013 and $250 million in 2014, according to the Investment Plan.
Headquartered in West Hartford, Connecticut, Fairview Capital is a private equity and venture capital fund of funds manager. The firm, which was founded in 1994, has $3.3 billion of capital under management.
Fairview’s investment team of 11 is run by co-founders Laurence Morse, former founding principal of TSG Ventures, and Joann Price, former president of the National Association of Investment Companies.