Illinois Teachers commits $170 mln, switches PE consultants

The $52 billion pension invested in the debut lower middle market fund from SK Capital.

Teachers’ Retirement System of Illinois announced commitments of just under $170 million to its private equity program after its Board of Trustees meeting Tuesday, the pension said.

Illinois Teachers invested $125 million to RCP Advisers, a Chicago-based firm that does funds-of-funds, secondaries and co-investments. This commitment was to a vehicle called RCP Multi-Feeder SBO 1.0, the pension told Buyouts. Illinois Teachers already has $51.6 million in assets with the firm.

Another $44 million went to SK Capital Partners Catalyst Fund I. The firm closed this fund in November at $400 million, according to sister title Private Equity International. This fund is SK’s debut lower middle market fund. New York State Teachers’ Retirement System also committed $40 million to the fund.

The pension also announced it was switching private equity consultants. StepStone Group will begin a five-year contract on January 1, 2020, replacing the current consultant, TorreyCove Capital Partners. Both firms are based in La Jolla, California.

As of June 30, 2019, Illinois Teachers had assets valued at $52.6 billion. Its fiscal year 2019 returns were 5.2 percent.

Action Item: read Illinois teachers’ comprehensive annual financial report for 2018 here.