Private Equity Making Big Splash At Two Louisiana Plans

Feb 17 2006 | 1:00am ET

The $1.4 billion Louisiana School Employees Retirement System and the $12.7 billion Teachers Retirement System of Louisiana are looking for private equity managers to handle a total of nearly $1 billion in assets.

The School Employees plan will search for up to two private equity managers to handle up to $60 million, said CIO Julia LeBlanc. The allocation is the plan’s first to private equity. The plan’s consultant, Segal Advisors, will present a shortlist to the board at its July 10 meeting. Interested firms should contact Gregory Moore at gmoore@segaladvisors.com.

The fund was first educated on alternatives at its Jan. 9 investment committee meeting.  At its Feb. 13 board meeting, it adopted a new asset allocation that included a 4% maiden investment in private equity.

Along with the private equity allocation, the new asset allocation targets are 50% to domestic equity, 10% to international equity, 30% to fixed-income and 6% to real estate, LeBlanc said. Final details of the new allocations are being ironed out, but the plan does not expect any firms to be terminated. Meanwhile, the Teachers plan is looking to invest up to $925 million in new commitments to private equity. The plan had returned $1.25 billion in cash from its alternative investment program in 2005 but the net return was only about $850 million.

The plan discussed the new investment at a meeting last Friday (FINalternatives, 2/10).

Brendan Brosnan, investment manager, said that last week the board adopted a 2006 strategic plan that calls for the new commitments. “We could do fund-of-funds but we generally do direct investments” in private equity, Brosnan said. He said the plan has already invited some firms for interviews at the next board meeting in March. He declined to name the firms but did say that interested firms should contact Paul Yett of Hamilton Lane Advisors at (610) 934-2222. 


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