Illinois Municipal Commits $451.9M to Alts, Redeems Three Int’l Equity Mandates

The Illinois Municipal Retirement Fund made $451.9M in total commitments across five funds while also terminating three managers from its international equity portfolio.

The $55.1B pension said it approved to commit $50M to Star Lake Opportunity Fund V; $50M to TA Realty Residential Real Estate Fund; €50M (~$51.9M) to IK Small Cap IV; and $50M to Turning Rock Partners Fund III. 

Illinois Municipal also moved to terminate and fully redeem a total of $615.8M across three international equity mandates: $258.9M under Franklin Templeton International Small Cap, $191.2M under Ativo International Developed Equity, and $165.7M under Lazard International Large Cap Value Equity. In tandem with the three terminations, the pension also committed approximately $250M to ARGA Investment Management, which adds to an existing $18.5M commitment it earlier made to ARGA through a manager-of-managers mandate. 

The terminations and ARGA commitment followed the pension’s review of its international equity structure, with assistance from general consultant Wilshire. Illinois Municipal said the remaining $365M from the redemptions will be used for rebalancing or for benefit payments.