Illinois Teachers’ seeks co-investment advisor

The $37bn retirement system’s co-investment programme, which launched last year, is already advised by LP Capital Advisors and TorreyCove Capital Advisors.

The Teachers’ Retirement System of the State of Illinois is searching for an investment firm to advise its private equity co-investment programme. The $37 billion retirement system already employs two advisors for its co-investment programme, LP Capital Advisors and Pacific Corporate Group Asset Management spinout TorreyCove Capital Advisors. 

“Using an advisor pool approach consisting of multiple advisors provides TRS with greater flexibility and more appropriate advisor appointment matching for co-investment opportunities,” the retirement system said in a statement.

A timetable for the search had not been finalised.

The retirement system launched its co-investment programme last year as part of an overhaul of its private equity portfolio, which included plans to sell older investments as well as ramp up exposure to international funds and secondaries.

Last month, Illinois Teachers’ completed what appeared to be its first co-investment in recent history, committing up to $40 million to invest alongside Stone Point Capital in mid-market finance company NXT Capital, according to documents released by the retirement system.

In addition to announcing the search for another co-investment advisor, the firm also committed $165.5 million in re-ups through its private equity portfolio. Morgan Creek Capital Management received $100 million for venture capital fund investments. Rhône Capital received €50 million its fourth partners fund, which is targeting mid-market businesses that operate, or have the potential to operate, in international markets. 

The retirement system increased its allocation to private equity in June, when the board of trustees approved a 12-month tactical investment plan that would hike its allocation to private equity by 1.9 percent of total assets. The pension fund will make between $900 million and $1.4 billion in private equity commitments over each of the next five years. Illinois Teachers’ had a 9.7 percent allocation to private equity as of 30 June.