SURS Weighs Portfolio Shift Amid Risk Debate; MacArthur Ups Impact Cap to $750M

SURS Weighs Portfolio Shift Amid Risk Debate

MacArthur Ups Impact Cap to $750M

The State Universities Retirement System of Illinois (SURS) will run its current asset allocation target through Meketa Investment Group’s new capital market assumptions in February, with a full asset-liability study potentially following as early as fall 2027. The review follows a peer study by BlackRock that ranked the $27.9B system in the 94th percentile for return per unit of risk but the 20th percentile for historical realized returns; one trustee argued the fund’s caution has cost it returns, while CIO Michael Schlachter defended the portfolio’s risk-efficient design.

Among other allocators, the MacArthur Foundation will raise its board-authorized impact investing allocation by 50% to $750M beginning in 2027, up from $500M, with capital from repaid investments redeployed. Elsewhere, the School Employees Retirement System of Ohio approved $175M across three fund commitments at its October meeting, split between core and non-core real estate and private credit, while the Houston Firefighters’ Relief and Retirement Fund authorized up to $140M across two private markets funds plus $50M in a precious metals ETF.

In GP fundraising, Sixth Street pulled in roughly $3.2B in fresh commitments across two vehicles feeding its TAO platform, an evergreen pool spanning credit, equity, and real assets that has grown to an estimated $30B; Warburg Pincus is reportedly nearing a final close on its 15th flagship growth equity fund, targeting $17B; and 8VC is seeking up to $400M for a new vehicle, 8VC DSS III, following last year’s $1.5B close of its seventh flagship fund.

In leadership developments, Nuveen named Susanne Russotto managing director and head of US wealth client services, joining from AllianceBernstein, where she served as COO of US retail sales; Keystone National Group named Andrew Kennedy managing director and head of distribution after nearly 14 years at Future Standard; and Deutsche Bank added Sean Lasher as director on its GP-LP Solutions team from Carlyle AlpInvest.