The $13.8 billion Louisiana Teachers’ Retirement System has set aside up to $375 million to spend on private equity over the next year.
The pension approved its 2012 fiscal year private market plan last week, and will allocate approximately $1 billion to private assets, which include private equity, commodities, debt, real estate and infrastructure-related strategies.
Louisiana Teachers’ will allocate up to $200 million for debt-related investments, up to $275 million to real estate managers and up to $75 million for both infrastructure and commodities investments.
The target allocation for private equity will continue to run at 10 percent to 12 percent of the total fund, while real assets and infrastructure will account for 7 percent and 2 percent respectively.
It is the first time Louisiana has had a dedicated infrastructure allocation, as the pension previously included infrastructure as part of its real assets programme.
Last month, the pension committed up to $50 million to TPG Growth Fund II, which targets small and mid-market growth buyouts, and up to $75 million to ICG Europe Fund V, a mezzanine fund with no specific sector preference.
Earlier this year, Louisiana committed up to $125 million to GSO Capital Opportunities II and up to $50 million to Providence Equity Partners VII.
Hamilton Lane devises the strategic private asset commitment pacing for the pension.