The $39 billion Teachers' Retirement System of the State of Illinois has issued a request for proposal for a private equity consultant. The move follows the latest round of staff departures from Pacific Corporate Group, the system’s current private equity consultant hired in May 2006.
“TRS is clearly disappointed in the recent events at PCG and the departure of our lead consultant at the firm,” said Stan Rupnik, chief investment officer at TRS. “We want to ensure TRS employs the most capable advisors as it relates to our investment program.”
As of Sept. 30, TRS had invested $1.5 billion in p.e., or 4.1% of the total fund. A new asset allocation adopted Dec. 8 by the TRS board of trustees increased the target allocation for private equity from 6% to 8%.
Private equity is among the system’s best performers, with year-to-date investment returns of 27.72% as of Sept. 30. TRS’s private equity portfolio is fully diversified across all subsectors, with commitments made to buy-outs, venture capital, distressed debt and mezzanine financing.
The deadline for the RFP is Jan. 17, 2007, and finalists will be presented to the TRS board of trustees at the Feb. 15 meeting.