Home > News > Newsmakers > Illinois SURS Looking to Hire New CIO
Newsmakers

Illinois SURS Looking to Hire New CIO

The $22.6 billion pension fund is also seeking investment analysts for fixed income, equities and real assets.

By Michael Katz



The State Universities Retirement System of Illinois, a public employee retirement system with 240,000 members, is looking for a CIO to oversee its portfolio, including its $22.6 billion defined benefit plan and defined contribution plans worth, as of June 2022, a combined $12 million.

According to a job posting on the Illinois SURS website, the CIO will be responsible for directing the management of Illinois SURS’ investment portfolio within the goals set by the board of trustees. The CIO will also spearhead the development of “an innovative, long-range, and comprehensive investment vision and strategy.”

The performance of the CIO, who will oversee a senior team of 11, will be measured by success at generating returns that exceed appropriate benchmarks, while also managing risks.

Among other duties, responsibilities of the role include:

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  • Directing the planning, design and management of SURS Investment Program in compliance with guidelines, policies and statutes;
  • Providing oversight and direction of the day-to-day activities of the investment program;
  • Participating and maintaining relationships with other institutional investors, investment managers and advisers to stay up to date with pension fund best practices;
  • Evaluating the current risk management program and recommending and implementing any necessary changes to ensure the portfolio’s risk is controlled;
  • Evaluating current external managers and recommending and implementing any necessary changes, such as rebalancing assets and hiring or terminating managers; and
  • Preparing and presenting written and oral reports to the SURS board of trustees and other stakeholder groups.


Illinois SURS is also looking to hire two investment analysts: one to cover equities and fixed income, and another to cover real assets. Both positions support senior investment officers, and both have main duties that include, but are not limited to:

  • Assisting with the selection, evaluation and monitoring of assigned managers by collecting information, creating metrics and attending meetings as needed;
  • Completing special projects and reports by conducting appropriate research, preparation of results and follow-up, while working closely with investment staff; and
  • Assisting with administrative responsibilities in the investment department, including quarterly/annual reports and legislative filings.

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Home > News > Asset Allocation > PE Buyouts ‘Meaningfully’ Outperform Public Equities, Norges Bank Finds
Asset Allocation

PE Buyouts ‘Meaningfully’ Outperform Public Equities, Norges Bank Finds

The pension giant also found that venture capital and growth equity have underperformed public equities.

By Michael Katz



Private equity buyouts have “meaningfully outperformed” public equities by an average of 300 to 400 basis points, according to research from Norges Bank Investment Management, which manages Norway’s $1.4 trillion sovereign wealth fund, the Government Pension Fund Global.

“We continue to find excess return for buyout after accounting for market risk and other risk factors,” stated an NBIM discussion note that analyzed the growth and performance of the private equity market. However, it added that performance is highly dispersed and depends on strategy, timing and manager selection. “As a result, the implementation of private equity and selection of private equity funds require careful consideration from investors.”

According to NBIM, global private equity assets under management have increased more than 12% annually since 2010 to reach $7 trillion in 2022. As a share of the public equity market, private equity has more than doubled in size to 9% in 2022 from 4% in 2010. It also noted that the growth of private equity has coincided with a slowdown in the growth of the number of public companies.

“While the private equity market has experienced significant growth, the growth of the public equity market has stalled over the same period,” the NBIM note stated. “The listed equity market has experienced modest growth in the past two decades, and the number of globally listed companies has levelled off. There has also been a decrease in the number of companies listing.”

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The number of IPOs in the U.S. has decreased to an annual average of around 120 since 2000, according to NBIM, from approximately 300 per year between 1980 and 2000. “The contraction in the number of listings is particularly notable as valuations have been high over this period, and this is when companies typically go public,” the NBIM note stated.

To evaluate the market for private equity, NBIM used fund- and deal-level data from investment data firm Preqin, which includes historical fund-level data on more than 50,000 funds collected from public sources and Freedom of Information Act requests. The market for private equity now represents more than 60% of the total market for alternative assets, including hedge funds, infrastructure and private debt, according to NBIM.

While NBIM found that private equity outperformed public equities, it also found that venture capital and growth equity, in contrast, have underperformed by an average of 100 to 200 basis points.

“However, the evidence on venture capital is mixed and varies based on the sample period and dataset employed,” the note stated.

NBIM also cautioned that because private markets disclose less than public markets in general, it is important for investors to determine whether disclosures are sufficient to manage their environmental, social and governance goals and reporting requirements.

“Investors should also examine the impact of private equity ownership on portfolio company ESG outcomes and the exposure to green assets that is achievable,” the note suggested. However, it added that “ESG disclosures from private equity firms appear to have increased considerably over time.”


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