The Teachers’ Retirement System of Louisiana (TRSL) provides retirement benefits to public school teachers and certain other education employees across the state of Louisiana. With approximately $25 billion in assets under management as of mid-2024, TRSL serves over 165,000 active and retired members.
Investment Strategy
TRSL maintains a diversified investment portfolio designed to generate returns sufficient to meet its long-term actuarial obligations. The asset allocation includes public equities, fixed income, real estate, private equity, and other alternatives. The system’s board of trustees sets the strategic allocation with guidance from investment consultants and staff.
Domestic and international equities form the largest portion of the portfolio, providing growth over the long term. Fixed income offers stability and predictable cash flows. TRSL has gradually increased its exposure to alternative investments as part of a broader effort to diversify the portfolio and capture private market return premiums.
Private Markets Approach
TRSL’s private markets program encompasses private equity and real estate. The private equity allocation targets approximately 10% of total assets, with commitments spanning buyout and growth equity strategies. The system emphasizes relationships with established managers who have demonstrated consistent performance across market cycles.
Real estate investments provide diversification and income generation, with allocations to core and value-add strategies across property types. TRSL invests through commingled funds managed by experienced real estate operators.
The investment selection process at TRSL involves collaboration between internal staff and external consultants. Prospective managers are evaluated on performance track record, team quality and stability, investment process, risk management capabilities, and fee structures. The board of trustees provides oversight and approves commitment recommendations from staff.
TRSL values managers who communicate clearly and provide transparent reporting on portfolio performance and operations. The system’s moderate size means it seeks managers who provide appropriate attention and access regardless of commitment size.
Frequently Asked Questions
What is the size of TRSL's private equity allocation?
TRSL allocates approximately 10% of total assets to private equity, representing roughly $2.5 billion in committed capital. The system invests across buyout and growth equity strategies, focusing on established managers with strong performance records.
What commitment sizes does TRSL typically make?
TRSL typically makes commitments ranging from $25 million to $75 million per fund. The system seeks to build a diversified private equity portfolio across vintage years and strategies while maintaining appropriate fund-level concentration limits.
How should managers approach TRSL for a potential investment?
TRSL works with external investment consultants who assist in sourcing and evaluating managers. The board of trustees approves new commitments. Managers should engage through consultant networks or contact the system's investment staff directly with a concise overview of their strategy and track record.
