Louisiana Teachers' allocates $305m to 'real assets'

The $11.4bn pension is to allocate $305m to real estate, infrastructure and commodoties although admits it has not committed to a real estate fund since early last year.

The $11.4 billion Louisiana Teachers’ Retirement System is to allocate $305 million to 'real assets', which includes real estate, infrastructure and commodoties, according to chief investment officer Philip Griffith.

This week, the pension worked with its consultant Hamilton Lane to create its annual investment plan. From this plan, it decided that private equity would get $245 million, although it is overweight in the sector.

Griffith warned that, despite allocating $305 million to real assets vehicles, the capital would mostly target infrastructure and commodities funds, Griffith said, adding the pension hasn’t committed to a real estate fund since early last year. 

“We’ve historically had a real estate portfolio,” he said, “We’ve made commitments for the last 10 years … a lot of these folks have not made any [investments],” Griffith said. “And they haven’t been sending anything back.”

Real assets has a target allocation of 9 percent, and an actual allocation of 5.6 percent.

Louisiana Teachers’ is reserving $350 million for commitments to debt and credit vehicles, which account for the bulk of the pension’s commitments this year. Already, the pension has committed to American Securities Opportunities Fund II, Blackstone Real Estate Special Situations Fund II, Merit Mezzanine Fund V, OHA Strategic Credit Fund and Peninsula Fund V.