Chicago Teachers’ Pension Considers Adding Private Credit Allocation; Considers PE Commitment Pacing

The Chicago Teachers’ Pension Fund is considering adding a new 3% target allocation to private credit.

According to meeting materials from the March 16 board meeting, a new asset allocation policy was to be recommended for approval. The changes to the asset allocation included adding a 3% target allocation to private credit. Other changes included increasing domestic equities from 30.5% to 31%, decreasing the international equity target from 27.5% to 20.5%, and increasing the fixed income target from 23% to 26.5%. 

Also disclosed in meeting materials was a proposed private equity commitment pacing target for 2023. A pacing study conducted by their consultant, Callan, recommended a $50 million allocation to private equity in 2023. $30 million would be allocated to three MWDBE managers. $10 million would be allocated to an existing majority owned buyout developed manager. And $10 million would be allocated to an existing buyout secondaries developed manager.

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