Chicago pension commits $15m to secondaries

The $850m Chicago Firemen’s Annuity and Benefit Fund will make a third secondaries investment by the end of the month.

The Chicago Firemen’s Annuity and Benefit Fund has committed $7.5 million apiece to secondary funds Goldman Sachs Vintage V and Adams Street Partners Global Opportunities Secondary Fund II. The pension will make a third, undisclosed secondaries commitment by the end of the year, chief investment officer Michael Moran told PEO.

“Through the use of secondary private equity offerings we are better able to round out our vintage year exposure,” said Moran.

The secondaries investments are the first the pension fund has made since a February 2005 commitment to Bank of America, the same month the pension fund launched its private equity programme.

No additional private equity commitments are anticipated in the near future because the 2008 budget has been spent. The pension will meet in early 2009 to determine how the investment programme will proceed for the year.

The Chicago Firemen’s Annuity and Benefit Fund has a 4 percent target allocation to private equity. Prior to the two most recent commitments, the real allocation stood at 1.8 percent, Moran said.

Moran declined to disclose the pension’s most recent private equity performance figures, but said that performance has been substantially in excess of benchmarks through 31 October, at which time the pension had $850 million in assets under management.