Illinois Teachers’ commits $550m

Providence Equity, Oaktree Capital Management and Riverstone Holdings have all received commitments from the $35bn retirement system.

The Teachers’ Retirement System of Illinois has committed more than $500 million to three private equity managers.

The system, which has about $35 billion in total assets, committed $250 million to Riverstone Global Energy and Power Fund V, which is targeting $6 billion and has already received pledges from the likes of the Texas County & District Retirement System and the New Mexico Public Employees’ Retirement Association.

Illinois Teachers’ also committed $200 million to Providence Equity Partners’ seventh fund, which also is targeting $6 billion; and $100 million to Oaktree Capital Management’s Opportunities Fund IX, which is seeking $4 billion and has already collected about $1.2 billion.

The system, which uses Pacific Corporate Group spin-out TorreyCove Capital Partners as its private equity advisor, increased its allocation target to the asset class last year. Illinois Teachers’ board of trustees approved a 12-month tactical plan that would make between $900 million and $1.4 billion in commitments over each of the next five years, including the 1.9 allocation increase in private equity investments. The system's target to the asset class is 12 percent.

As of December, the system had a 10.6 percent allocation to private equity.

Illinois Teachers’ also is seeking an advisor for its co-investment programme. The system plans to employ a pool of advisors for the programme, and has already designated LP Capital Advisors and TorreyCove for consultation.