Illinois Teachers’ Retirement System Bets Big on Alternatives

The massive pension system is putting money into private credit strategies

Illinois Teachers’ Retirement System is preparing to allocate about $1.4 billion toward alternative investment strategies.

A report from Pension and Investments outlines the commitments from the teachers’ pension program. According to the report, ITRS will allocate big sums to private credit strategies. Hayfin Capital Management will receive $500 million, while Intermediate Capital Group will manage another $500 million.

The $52.7 billion retirement fund will also allocate $125 to Cerberus Capital Management. The capital will tap into the Cerberus Real Estate Debt Fund. Meanwhile, Beach Point Capital Management will handle $125 million for its private credit strategy.

More Illinois Teachers’ Retirement System Commitments

Meanwhile, with the Illinois Teachers’ Retirement System sitting on around $1.25 billion in new private debt commitments, it’s clear that the fund sees special situations as a clear money maker in the future. Right now, its total debt portfolio sits at $2.2 billion. That said, the fund allocated the other $150 million for alternatives to the private equity market.

ITRS provided $24 million to Sunstone Partners. It also committed $45 million to Zelnick Media Capital and the ZMC III fund. Finally, ITRS placed $60 million with Exeter Property Group. The real estate fund manager operates the Exeter Industrial Core Fund III.

Finally, this morning, ITRS reported that it returned a net 5.15% for the year ending June 30. That figure trailed its benchmark of 7.16%

[Related: Private Equity Giant Thoma Bravo Eyes $15 Billion Fund in 2020]

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