Chicago Teachers’ Selects New Int’l Equity, Private Credit Managers

The Chicago Teachers' Pension Fund (CTPF) approved the hiring of several new managers in its international equity and private credit portfolios, according to published materials related to its November 21 board meeting. 

In its revised international equity structure, the pension replaced LSV Asset Management with Brandes as value manager due to a “litigation matter.” LSV was first announced along with Arga Investment Management and Ariel Investments as one of the selected value managers during a January 18 board meeting. The sub-asset class will retain its 20% target weight following the manager replacement.

In private credit, the pension selected a total of eight new managers across three sub-strategies: direct lending, opportunistic, and specialty finance. OHA, Jefferies, and Turning Rock were selected as managers for its direct lending mandate, earmarked with a 30% to 60% target allocation comprising a range of 15% to 50% each in small- to medium- markets and large markets. Monroe Capital and Blue Owl were also considered.

For its opportunistic mandate with a target allocation of 20% to 40%, CFI Partners and Silver Rock were selected as managers among the finalists. Dakota earlier reported on October 17 that CTPF had narrowed its search for opportunistic managers to four finalists, which also included Sixth Street and Silver Point. 

For its specialty finance mandate, which has also been allocated a 20% to 40% target range, all three finalists in the manager search were selected: 400 Capital Management, Atalaya Capital, and Crayhill Capital Management.

Meanwhile, the pension is retaining a target allocation of up to 10% for a potential selection of one emerging fund of funds manager. The allocation may be redistributed within the private credit portfolio in the event that no manager is selected.

Manager searches for these international equity and private credit sub-strategies were first issued in the fourth quarter of last year. Callan assisted the pension in the selection process.

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