Private Equity
The pension plan made $665 million in total private equity/current return and real estate commitments in the second quarter.
Allocations to illiquid asset classes will provide university portfolios with stronger returns relative to public equity or bond markets over the long term, despite liquidity or spending squeezes in the short term.
The institution temporarily paused making investments in illiquid assets in the first quarter after reviewing its investment policy and guidelines, where concerns about private equity investing and not having an updated five-year strategic plan were made.
The retirement system also concluded its private equity and index manager searches.
The retirement system approved three alternatives commitments at its meeting last week.
The retirement fund disclosed nine commitments totaling $1.2 billion in May.
The $50 million in total commitments is subject to board approval next week.
Interested firms must be raising at least $300 million in commitments.
Five total firms were interviewed at a board meeting yesterday.
The fund received a total of six bids in its private markets consultant search.