By David G. Barry
The Teachers’ Retirement System of Louisiana (TRSL) kicked
off its aggressive efforts to add to its private assets portfolio during the
new fiscal year.
The board of the $26 billion plan gave its approval earlier this month to
committing up to $50 million in Bernhard Capital Partners’ BCP Fund III, up to
$50 million in Hark Capital’s Hark Capital IV, L.P. and up to $75 million in
TPG’s TPG Partners IX. Bernhard is an infrastructure fund, while TPG is a
private equity fund. Hark Capital, which is part of Aberdeen Standard
Investments, is a direct lender.
TRSL, according to a report presented to the board by Hamilton Lane, is seeking
to commit $2.9
billion to $3.9 billion to private assets during the 2022-2023 fiscal year. The
plan calls for putting:
·
$500 million to $700 million into buyout funds
·
$150 million to $250 million in venture capital
·
$700 million to $900 million in distressed
debt/mezzanine
·
$400 million to $500 million in direct lending
·
$200 million to $300 million in infrastructure
·
$50 million to $100 million in commodities
TRSL is above its allocation targets for buyouts, venture
capital and commodities and below its target for distressed debt/mezzanine and
infrastructure. Direct lending is a new category.
During the 2021-2022 fiscal year, TRSL had targeted investing $1.3 billion to
$1.9 billion in private assets but had actually deployed $2.07 billion through
June.
Also at the meeting, the plan’s board chose Cohen & Steers Capital
Management over CenterSquare Investment Management LLC as a global real estate
investment trust (REIT) manager. Earlier this year, TRSL’s investment committee
voted to retain Dimensional Fund Advisors as one global REIT manager and chose
Cohen & Steers and CenterSquare for interviews.