By David G. Barry
Teachers’ Retirement System of Louisiana (TRSL) has approved a new asset allocation strategy—one that will result in increased targets for private assets and specifically private equity.
The TRSL investment committee voted last week to increase the maximum allowable allocation for private assets to 38% from 35%. As of Feb. 28th, the $26 billion fund had 37.7% of its assets in alternatives, which excludes core real estate. As part of the proposal, the committee also voted to increase the maximum allowable allocation for private equity to 18% from 14%, and venture capital to 7% from 3%. As of the end of February, TRSL had a 22.6% allocation to the asset class.
At the meeting, the investment committee also approved a series of fund investments. They included agreeing to invest up to $100 million in both Crescent Capital Group’s Crescent Credit Solutions VIII, L.P. and Crow Holdings Realty Partners X, L.P. and up to $25 million in Silver Lake Partners VII.
TRSL also narrowed the list of finalists for its first-time search for a manager seeking to locate, evaluate and commit to co-investment opportunities offered by private market investment funds. A subcommittee voted to recommend that the investment committee interview four firms for the role: Hamilton Lane, HarbourVest Partners, Neuberger Berman and StepStone Group. Fisher Lynch Capital and AlpInvest Partners had also submitted proposals.
The mandate is expected to be approximately $300 million over a three-year period. The pension fund is seeking to select a firm by early June. According to the solicitation for proposals, the winning firm will have discretionary investment authority to direct, suggest, manage, monitor or acquire any private equity and real asset co-investments subject to the pension fund’s investment policy statement.
TRSL Approves New Asset Allocation
By David G. Barry