OAK BROOK, Ill. – On Friday, the Illinois Municipal Retirement Fund (IMRF) Board of Trustees approved about $395 million in commitments within the Private Markets and Real Estate asset classes, of which $100 million was allocated to a Latino-owned investment management firm. In addition, the Board approved a $2.15 billion rebalance plan to address asset allocation imbalances and areas of concentrated risk within the Public Markets asset classes. As a result of the rebalance, $940 million or 44% will be allocated to Minority- and/or Women-owned Business Enterprise (MWBE) firms. As of June 30, 2021, MWBE firms manage $11.9 billion or 21.8% of IMRF’s total portfolio.
Private Equity: $245 million in commitments
The Board approved the following commitments, subject to satisfactory legal due diligence:
- Up to $20 million to Vensana Capital II, L.P. IMRF is an existing investor in Vensana Capital I, L.P. through a $20 million commitment.
- Up to $25 million to ABRY Heritage Partners II, L.P. IMRF is an existing investor in ABRY funds, totaling $318.5 million in aggregate commitments.
- Up to $100 million to Baring Asia Private Equity Fund VIII, L.P. IMRF is an existing investor in Baring funds, totaling $76.7 million in aggregate commitments.
- Up to $100 million to Clearlake Capital Partners VII, L.P. IMRF is an existing investor in Clearlake funds, totaling $243.9 million in aggregate commitments. Clearlake qualifies as a Latino-owned investment management firm, as defined by the Illinois Pension Code.
Real Estate: $150 million in commitments
The Board approved the following commitments, subject to satisfactory legal due diligence:
- Up to $50 million to Crow Holdings Development Opportunities Fund I, L.P. IMRF is an existing investor in Crow funds, totaling $250 million in aggregate commitments.
- Up to $100 million to Blackstone Real Estate Partners Asia III, L.P. IMRF is an existing investor in Blackstone funds, totaling $1.2 billion in aggregate commitments.
Public Markets rebalancing
IMRF’s actual allocations to U.S. and International Equity are overweight relative to their target asset allocations. Conversely, IMRF’s actual allocation to Fixed Income is underweight relative to its target asset allocation. In addition to these asset allocation imbalances, areas of concentrated risk have developed within IMRF’s U.S. Equity allocation related to manager and investment styles. These risks can be mitigated by transferring funds from areas of over concentration into areas of lesser concentration.
To address the asset allocation imbalances and areas of concentrated risk, the Board approved the following Public Markets rebalancing activities, subject to satisfactory legal due diligence:
- Withdrawal of up to $900 million from Sands Large Cap Growth
- Withdrawal of up to $200 million from NTGI MSCI EAFE Index Fund
- Convert NTGI MSCI EAFE Index Fund to NTGI MSCI ACWIxUS Index Fund
- Withdrawal of up to $325 million from DFA Small Cap Value
- Withdrawal of up to $325 million from ICOM Small Cap Value
- Termination and full withdrawal of approximately $200 million from FIAM Small Company Fund
- Withdrawal of up to $200 million from DFA Micro Cap (previously approved with remaining assets incorporated into rebalancing activities)
- Allocation of up to $470 million to Longfellow Core Plus Fixed Income, a Woman-owned firm
- Allocation of up to $470 million to Ramirez Core Fixed Income, a Latino-owned firm
- Allocation of up to $160 million to Barings Global Loan Fund
- Allocation of up to $200 million to Cohen & Steers Global Listed Infrastructure
- Allocation of up to $550 million to IMRF Internally Managed Portfolio SciBeta High Factor Intensity
- Allocation of up to $300 million to IMRF Internally Managed GSAM Factor Diversity
As of June 30, the total IMRF portfolio was valued at $54.7 billion.
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