Illinois Teachers Allocate Over $350M to Private Markets

The Teachers’ Retirement System of Illinois, which oversees $72 billion in assets, increased its private equity and credit programs by $350 million through four investments. A new manager was selected for the emerging manager program, while two existing managers received commitments in private equity.

Stone Point Capital received a $175 million investment for its buyout strategy, which focuses on financial services companies and those in adjacent sectors. In the emerging manager program, $50 million was allocated to current manager Stellex Capital Management’s Stellex Capital Partners. Additionally, a $15 million commitment was made to a new manager, Fifth Century Partners, which specializes in middle market private equity.

In private credit, London-based firm Park Square Capital received a €100 million ($112 million) investment from the Illinois Teachers’ $19.5 billion global fixed income program. The direct lending strategy focuses on European opportunities.

Additionally, the pension fund’s trustees issued redemption notices to two hedge funds that are part of its $1.7 billion diversifying strategies portfolio. Officials terminated Tilden Park’s $160 million allocation and Brevan Howard’s $65 million commitment at the August board meeting. Other redemptions in the program over the last year have occurred with Maniyar Capital Advisors, PDT Partners, and Light Sky Macro.