Chicago’s LABF to invest $10m in a secondaries fund

The $1.4bn pension fund will likely make a commitment in the fourth quarter or in the first quarter of 2016 at the latest.

The Laborers & Retirement Board of Employees’ Annuity & Benefit Fund of Chicago, or LABF, is in the midst of selecting a private equity secondaries fund to invest $10 million.

The $1.4 billion pension fund issued a request for proposal on 22 July, and firms had until 14 August to submit proposals if interested in the mandate. The pension fund plans to make a commitment during the fourth quarter or possibly in the first quarter of 2016. LABF’s investment consultant NEPC is helping with the search.

Here are some of the minimum qualifications required:

The firm should have at least $1 billion in assets under management. It should have raised at least three prior private equity secondaries funds. It should be targeting at least $250 million with its new fund. The firm should have been in operations for at least 10 years, and it should have six professionals dedicated to the secondaries fund.

LABF currently has $42 million, or 3 percent of its portfolio, invested in private equity, below its target allocation for private equity of 6 percent. Some of its prior private equity commitments were made to Hopewell Ventures and Midwest Mezzanine Funds, both based in Chicago, as well as Pantheon Ventures.