Grosvenor Beats Out K2 For Illinois Teachers' Fund Of Funds Mandate

Dec 9 2013 | 9:58am ET

The Illinois Teachers' Retirement System is keeping its fund of hedge funds management local.

The $40.8 billion pension on Friday handed its entire fund of funds program to Chicago-based Grosvenor Capital Management, terminating its other fund of hedge funds manager, K2 Advisors. TRS had decided in May to eliminate one of the two firms as it reduces its fund of funds investments to focus on direct hedge fund investments.

The pension also picked a firm to assist on that program: Albourne Partners will serve as the general consultant to TRS' absolute return portfolio, currently at $2.15 billion.

For its part, Grosvenor will now manage $998 million for TRS.

TRS said that Grosvenor was a "better current fit" and had "more resources," including a new private-equity business. The pension "decided that having two fund of funds managers and paying the fees for two fund of funds managers was not in the best interest of the portfolio," spokesman Dave Urbanek said.

TRS also approved a $100 million commitment to the Blackstone Group's Real Estate Partners Asia fund.


In Depth

Exotic Assets: Investing In Rare Violins

Jan 17 2017 | 4:43pm ET

By definition, alternative investments include exotic assets far beyond your typical...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Trump Administration: What It Could Mean for Carried Interest

Jan 19 2017 | 5:25pm ET

The arrival of the Trump administration brings the potential for a repeal of the...

 

From the current issue of

Versum Materials (VSM), with a market capitalization of $2.7 billion, enables chipmakers to achieve higher performance at lower cost with enhanced reliability. Versum is a leading global provider of electronic materials for the integrated circuit and flat-panel display markets.