Firms & Funds

Illinois Teachers backs Inflexion, Stone Point and TA

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Illinois, Teachers’ Retirement System of the State of Illinois, pension fund, private equity
Illinois state flag
  • AUM: $51.1 bln
  • PE Allocation: 13.2 pct, target 12 pct
  • Whom to contact: Dave Urbanek, director of communications, durbanek@trsil.org

The Teachers’ Retirement System of the State of Illinois pledged $244 million in private equity commitments spanning European and North American markets at its June meeting.

The system committed 39 million pounds (about $49.4 million) to two funds from London-based Inflexion Private Equity Partners, which already manages $1.8 million of Illinois’ assets, according to its website. The system pledged $17.7 million to middle-market buyout fund Inflexion Enterprise V and $31.6 million to Inflexion Supplemental V, which provides co-investment equity to buyouts, said system spokesman Dave Urbanek.

Illinois committed $100 million to Stone Point Capital’s Trident Fund VIII, which set a hard cap at $6.5 billion. The fund focuses on financial services in North America and Western Europe. Illinois has committed to previous Stone Point funds. The pool manages $229.2 million in the system’s assets.

TRS also pledged $95 million to TA Associates’ TA XIII-A. TA did not respond to a request for comment about the size or other information about the fund. TA’s flagship thirteenth fund closed in May at a hard cap of $8.5 billion, exceeding its target of $7.5 billion. Fund XIII focuses on small to medium buyouts and global growth companies. TA Associates manages $66 million of TRS’s assets.

Illinois said it will issue two requests for proposals for consultants to help manage its private equity and real estate portfolios. The proposals will be released in the summer, and a consultant is expected to be chosen in the latter part of the year.

TRS’s deal with its current private equity consultant, TorreyCove Capital Partners, was finalized in 2015. Illinois must rebid its investment consulting contracts every five years, according to state law.

Private equity makes up 13.2 percent of the system’s $51.1 billion portfolio, exceeding its 12 percent target.

Correction: The commitments to Inflexion’s funds were made in British pounds and not euros. The story has been updated to reflect the correct total.