By David G. Barry
The Teachers’ Retirement System of
Louisiana (TRSL) has committed more
than $400 million to a half a dozen funds focused on real estate, distress debt
and private equity.
The $24.3 billion pension fund got the OK at its September board meeting to
invest up to $75 million each in three real estate funds: EQT Exeter Industrial
Value Fund VI, L.P., Henderson Park Fund II SCSp and Harbert Europe Real Estate
VI, L.P.
It also is committing to two distress funds: $125 million to HPS Special Situations
Opportunity Fund II, L.P. and $25 million to Ares Special Opportunities Fund
II, L.P. TRSL also allocated up to $50 million in Energy Capital Partners’ ECP
V, L.P., an energy-focused private equity fund.
As of June 30, alternative assets – including private equity and credit – and
real estate accounted for nearly a half of its portfolio at 48.9%.
The system is in the midst of an aggressive effort to add to its portfolio
during the 2022-23 fiscal year, targeting $2.9 billion to $3.9 billion. In July,
it committed $175 million to an infrastructure fund, BCP Fund III; $50 million
to a direct lending fund, Hark Capital IV, L.P.; and up to $75 million to a
private equity fund, TPG Partners IX.
TRSL generated a negative
7.7% return for the fiscal year ended June 30, beating its benchmark of
negative 11%.
