Indiana Teachers names Hamilton Lane adviser

The Teachers’ Retirement System of Indiana has signed up Hamilton Lane, the Bala Cynwyd, Pa.-based investment adviser, to help shape its growing private equity portfolio.

In September 2006, the pension fund’s board of directors voted to double its target allocation to the asset class from 5% to 10 percent. With $5.5 billion under management, the bump means the pension fund now has about $550 million to devote to private equity, up from $275 million. With twice as much capital devoted to the private equity landscape, the board decided it made sense to bring in another point of view, said Chief Investment Officer Robert Newland.

Portfolio Advisors serves as the primary adviser for the state pension fund and will continue in that role. Also, Credit Suisse’s Customized Fund Investments Group oversees $50 million earmarked for investment with Indiana-based private equity funds.

“Our board just felt that while Portfolio Advisors is doing an excellent job—and we have no complaints at all—they felt that maybe Hamilton Lane could diversify things a little bit and add some funds,” Newland said.

The state pension fund has made commitments of roughly $500 million to private equity funds, with actual investments hovering between $200 million and $215 million, according to Newland.

While Indiana Teachers’ is looking to increase its exposure to the asset class, the board favors buyout funds, mezzanine funds and venture capital vehicles. The state pension fund has no plans to broaden its investments into sectors such as infrastructure.

The LP has made recent commitments to such buyout firms as Bain Capital, Black Diamond Capital Management, The Blackstone Group, Charterhouse Capital Partners, GTCR Golder Rauner and Oaktree Capital Management, among others. —Joshua Payne