OAK BROOK, Ill. – On Friday, the Illinois Municipal Retirement Fund (IMRF) Board of Trustees approved about $451.9 million in commitments within the Real Assets, Alternatives, Private Credit, and International Equity asset classes, of which $300 million or 66% was committed to minority-owned or woman-owned firms. The Board also authorized the termination and full redemption of three mandates following a structural review of the International Equity portfolio.
The Board approved the following commitments, subject to satisfactory legal due diligence:
Real Assets Commitments
- Up to $50 million to Star Lake Opportunity Fund V, L.P. IMRF is an existing investor in other J.P. Morgan real estate funds, with $150 million in aggregate commitments.
- Up to $50 million to TA Realty Residential Real Estate Fund, L.P. IMRF is an existing investor in TA Realty funds, with $175 million in aggregate commitments.
Alternatives Commitments
- Up to €50 million (about $51.9 million) to the IK Small Cap IV Fund. IMRF is an existing investor in Francisco Partners funds, with $124.4 million in aggregate commitments.
Private Credit Commitments
- Up to $50 million to Turning Rock Partners Fund III, L.P. Turning Point qualifies as a woman-owned firm per the Illinois Pension Code.
International Equity Structural Review
IMRF staff and investment consultant Wilshire recently completed a planned structural review of the International Equity portfolio. The goals of the review were to better optimize the portfolio, maintain prudent diversification, and enhance risk-adjusted returns. As a result of that review, the Board approved the following redemptions and commitments, subject to satisfactory legal due diligence:
- A termination and full redemption of about $258.9 million from the Franklin Templeton International Small Cap mandate.
- A termination and full redemption of about $191.2 million from the Ativo International Developed Equity mandate.
- A termination and full redemption of about $165.7 million from the Lazard International Large Cap Value Equity mandate.
- A commitment of about $250 million to ARGA Investment Management, L.P. ARGA currently manages $18.5 million in IMRF funds through a manager-of-managers mandate. ARGA qualifies as a minority-owned firm per the Illinois Pension Code.
IMRF will utilize the residual balance of about $365 million from the redemptions for rebalancing or to fund benefit payments.
As of October 31, the total IMRF portfolio was valued at $55.1 billion.
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