Louisiana Teachers sets private equity target allocation for FY2023

Teachers’ Retirement System of Louisiana will target between $500 million and $700 million in private equity commitments for fiscal year 2023 and has already committed a significant percentage of that figure.

Fundraising over the past year has tightened. The denominator effect has been a primary cause of this trend, resulting in several public pension systems setting tight commitment limits for the coming year.

Louisiana Teachers currently allocates 16.2 percent of its portfolio to private equity, above its 12 percent target, according to private equity consultant Hamilton Lane’s presentation made at the $24.2 billion system’s meeting on October 6.

Buyouts reviewed a copy of the presentation.

According to the presentation, the system will make between six to eight commitments in fiscal year 2023. Louisiana Teachers has already made three commitments totaling $225 million, according to the presentation.

These commitments include $75 million to Blackstone IX, $75 million to TPG Partners IX and $75 million to JFL Equity Investors VI, according to the presentation.

The sixth JFL Equity Investors fund has a target of $1.6 billion and focuses on mid-market firms in the maritime, environment services, aerospace and government and defense industries, according to the presentation.

Louisiana Teachers also plans to make three to five venture capital commitments in fiscal year 2023 at a total of between $150 million and $250 million, according to the presentation. It has yet to make any venture capital commitments, according to the presentation.