Louisiana Teachers’ creates infra allocation

The $13.8bn pension will allocate about $1bn to private assets in FY 2012, including up to $75m for infrastructure and commodities. The fund has also established a dedicated infrastructure allocation, separating infrastructure from the real assets programme.

The $13.8 billion Louisiana Teachers’ Retirement System has set aside up to $75 million to spend on investments in commodities and infrastructure this year, and has also established a separate 2 percent allocation to infrastructure.

It is the first time Louisiana has had a dedicated infrastructure allocation, as the pension previously included infrastructure as part of its real assets programme.

The pension approved its 2012 fiscal year private market plan last week, and will allocate approximately $1 billion to private assets, which include private equity, commodities, debt, real estate and infrastructure-related strategies.

Louisiana Teachers’ will allocate up to $200 million for debt-related investments, up to $275 million to real estate managers and up to $375 million for private equity.

The target allocation for private equity will continue to run at 10 percent to 12 percent of the total fund, while real assets will account for 7 percent.

Last month, the pension committed up to $50 million to TPG Growth Fund II, which targets small and mid-market growth buyouts, and up to $75 million to ICG Europe Fund V, a mezzanine fund with no specific sector preference.

Earlier this year, Louisiana committed up to $125 million to GSO Capital Opportunities II and up to $50  million to Providence Equity Partners VII.

Hamilton Lane devises the strategic private asset commitment pacing for the pension.