Illinois Municipal commits $250 mln to Vista, ABRY, Valor, others

  • Retirement agency commits $250 million to several funds
  • Vista Equity Partners Fund V gets largest commitment
  • Pension is below its allocation target for alternatives

Illinois Municipal Retirement’s actual allocation to alternatives stood at 5.3 percent on Jan. 31, below its 9 percent target for the alternative asset class, which includes private equity, absolute return, agriculture and timberland funds.

“IMRG will continue to strategically balance and diversify its portfolio to meet its asset allocation targets,” the pension system said in supporting documents for its Feb. 28 meeting.

In its single largest commitment, the pension system’s board of trustees pledged up to $100 million to Vista Equity Partners V LP, the latest flagship fund from Vista Equity, an existing manager for the agency. The pension system committed $15 million to Vista Foundation Fund II, an investment pool for low- to mid-market software firms, as well as $50 million to Vista Credit Opportunities Fund.

A fixture on the fundraising trail, Vista Equity closed on $1.1 billion last year for its small- and mid-cap software fund, Foundation Fund II, ahead of its $500 million target. In 2012, it closed its fourth flagship fund with $3.5 billion, ahead of its $2.5 billion target.

Illinois Municipal Retirement also committed $50 million to ABRY Advanced Securities Fund III LP, following a previous $20 million pledge to an earlier fund, ABRY Senior Equity IV. The advanced securities fund is targeting at least $1 billion for investments in senior debt, according to a report by sister website peHUB.

The pension system also committed $25 million to five sector-focused mid-market buyout funds with $5 million each: AUA Private Equity Fund LP from AUA Private Equity Partners, Estancia Capital Partners LP from Estancia Capital Partners, New Mainstream Capital Fund II LP from New Mainstream Capital, Valor Equity Partners III LP from Valor Equity and Vistria Fund LP from Vistria Group. All of these managers are new to the retirement system.

Filling out its allocations, Illinois Municipal Retirement also committed up to $35 million for CBRE Strategic Partners U.S. Value 7 LP, a real estate fund, and up to $30 million to Lightspeed Venture Partners X LP.