Key Takeaways
- • Illinois Teachers' Retirement System (TRS) disclosed $1.3 billion in private markets investments and approved a fiscal year 2027 strategic credit pacing plan and co-investment program at its October board meeting, according to a recent news release.
- • TRS committed $800 million across three real estate managers: a new $500 million commitment to AEW Capital Partners, $125 million to Heitman Real Estate Investment Management, and $100 million to Principal Real Estate Investors, with an additional $75 million to Barings Real Estate Advisers.
- • The FY2027 credit pacing plan allows commitments of up to $1.05 billion to private debt, including $100 million to $200 million for emerging managers, and up to $100 million to the private portion of its global multicredit solutions portfolio.
- • TRS approved a strategic credit co-investment program designed to help lower fees and improve selectivity, according to fund documents.
Summary
The Illinois Teachers' Retirement System, based in Springfield, disclosed $1.3 billion in private markets investments and approved a strategic credit pacing plan and co-investment program for fiscal year 2027 at its October board meeting, according to a recent news release. The system manages $87.9 billion in assets.
On behalf of its $13.7 billion real assets portfolio, TRS committed $800 million across four managers. The largest commitment was a new $500 million allocation to AEW Capital Partners, a relationship new to TRS. TRS also committed an additional $125 million to Heitman Real Estate Investment Management, which currently manages $1.7 billion for the system, an additional $100 million to Principal Real Estate Investors, which manages $1.0 billion, and an additional $75 million to Barings Real Estate Advisers, which manages $1.1 billion.
In its $4.5 billion diversifying strategies portfolio, TRS invested $250 million in Capula Global Relative Value Fund Ltd. Capula Investment Management is a new relationship for the system.
On behalf of its $14.1 billion private equity portfolio, TRS committed $211.3 million across several funds. These included $125 million to CD&R Fund XIII, managed by Clayton, Dubilier & Rice, which currently manages $120.7 million for TRS; $51.3 million to MED Platform III Feeder and $17.1 million to MED IV Feeder, both managed by ARCHIMED, which currently manages $90.5 million for the system; and $35 million to Craft Ventures V, where Craft Ventures currently manages $98.1 million for TRS.
As of June 30, TRS had a 54% allocation to equities (public and private), 15.7% to real assets, and 5.10% to diversifying strategies.
Trustees also approved a strategic credit pacing plan for fiscal year 2027. The plan includes commitments of up to $1.05 billion to private debt, including $100 million to $200 million for emerging managers, and up to $100 million to the private portion of its global multicredit solutions portfolio. According to fund documents, TRS also approved a strategic credit co-investment program intended to help lower fees and improve selectivity.
On behalf of its $13.7 billion real assets portfolio, TRS committed $800 million across four managers. The largest commitment was a new $500 million allocation to AEW Capital Partners, a relationship new to TRS. TRS also committed an additional $125 million to Heitman Real Estate Investment Management, which currently manages $1.7 billion for the system, an additional $100 million to Principal Real Estate Investors, which manages $1.0 billion, and an additional $75 million to Barings Real Estate Advisers, which manages $1.1 billion.
In its $4.5 billion diversifying strategies portfolio, TRS invested $250 million in Capula Global Relative Value Fund Ltd. Capula Investment Management is a new relationship for the system.
On behalf of its $14.1 billion private equity portfolio, TRS committed $211.3 million across several funds. These included $125 million to CD&R Fund XIII, managed by Clayton, Dubilier & Rice, which currently manages $120.7 million for TRS; $51.3 million to MED Platform III Feeder and $17.1 million to MED IV Feeder, both managed by ARCHIMED, which currently manages $90.5 million for the system; and $35 million to Craft Ventures V, where Craft Ventures currently manages $98.1 million for TRS.
As of June 30, TRS had a 54% allocation to equities (public and private), 15.7% to real assets, and 5.10% to diversifying strategies.
Trustees also approved a strategic credit pacing plan for fiscal year 2027. The plan includes commitments of up to $1.05 billion to private debt, including $100 million to $200 million for emerging managers, and up to $100 million to the private portion of its global multicredit solutions portfolio. According to fund documents, TRS also approved a strategic credit co-investment program intended to help lower fees and improve selectivity.
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