Manager SelectionJuly 22, 2024

Illinois Police Fund Seeks Credit Manager

The pension, which plans to build out a private credit strategy, approved a request for proposal for a manager.

Reported by Matt Toledo

The board of the Illinois Police Officers’ Pension Investment Fund on Friday approved a search for an investment manager to invest a majority of the fund’s planned private credit asset allocation.

Initial responses to the request for proposal are due on August 6. By September 6, candidates are expected to submit sample portfolio constructions to the fund, and complete proposals are due by October 10, in accordance with all RFP requirements. A selection decision is targeted for the fund’s December 13 meeting.

Some requirements for the manager include:;

Assets under management of at least $10 billion;

Ability to deliver diversified exposure to the private credit asset class;

Low total fees, discouraging double layers of performance fees and carried interest; and

Experience working with institutional investors like IPOPIF.

The fund has a new target allocation of 5% (approximately $550 million) to the credit asset class. The fund plans to allocate at least 3% of its total portfolio to one private credit manager. The allocation is a new one for the fund, which seeks to diversify its alternatives-light portfolio.

Amidst its push into the private markets, the fund recently appointed a first deputy CIO, Greg Turk, to build out its alternatives investments. In the long term, IPOPIF plans a 20% allocation to private market assets: 7% private equity, 5% each private credit and real estate, and 3% infrastructure.

“This search seeks a single private credit platform with a wide spectrum of diversified strategies and an experienced track record,” said IPOPIF Investment Officer Steve Yoon in a statement. “We believe a single platform will provide the scale and scope to allow IPOPIF’s private credit program to scale up in a timely and effective process.”

IPOPIF, a consolidation of more than 300 local police pension funds in Illinois, managed $10.4 billion in assets as of the end of May 2024.