Illinois TRS Doles Out $150M In Pledges, Approaches Target

Teachers’ Retirement System of the State of Illinois recently committed $50 million apiece to two buyout funds and one growth equity fund as it marches toward its 8 percent target allocation to private equity. The pension fund, which has $38.7 billion in assets under management, had an actual allocation of 5.8 percent at the end of March and could reach the goal next year.

In this latest round, the limited partner pledged $50 million to Blackstone Capital Partners VI, a buyout fund; $50 million to Edgewater Growth Capital Partners III, a growth equity fund; and $50 million to GI Partners Fund III, a buyout fund which the firm has not backed previously.

The Blackstone Group’s Blackstone Capital Partners VI is earmarked for investments in leveraged buyouts, corporate partnerships, growth equity and strategic minority investments globally. The firm held a first close in August with $7.1 billion and seeks $19.5 billion for the fund, which had 76 backers as of mid-August, according to a regulatory filing.

The Edgewater Funds of Chicago is raising up to $750 million for its third growth equity fund, according to a regulatory filing. Edgewater Growth Capital Partners III LP is earmarked for growth equity and buyout investments in lower middle-market companies generating revenues of $20 million to $500 million. The firm plans to make both growth equity (minority) and buyout (majority) investments in business services, financial and government services, consumer products and services, health care services, IT services and software and basic industries.

GI Partners, which makes control-oriented equity investments of $25 million to $250 million, has gathered roughly $1.8 billion toward a $2.5 billion target for GI Partners Fund III, as previously reported in Buyouts. The firm expects to hold another close early next year. GI Partners invests in buyouts of either healthy or distressed health care services, hospitality, leisure and retail, logistics, media, entertainment, financial services, technology, telecom services and infrastructure in the United States and Western Europe. The firm has dual headquarters, in Menlo Park, Calif., and London. The $1.45 billion GI Partners Fund II is fully invested.

The breakdown of the LP’s exposure within its private equity portfolio is 60 percent to 80 percent toward buyouts; venture capital, 10 percent to 25 percent; and special situations, 5 percent to 20 percent.