Chicago Transit pension posts debt, infrastructure searches

The Chicago Transit Authority pension plan is seeking firms to handle mezzanine debt, bank loan and infrastructure mandates.  

The Chicago Transit Authority (CTA) pension plan has issued requests for proposals (RFPs) seeking managers to handle mezzanine debt, bank loan and infrastructure mandates.

The mezz mandate will be $70 million, bank loans at $35 million and infrastructure at $85 million. All proposals are due by 4 March. Chicago-based consulting firm Marquette Associates is assisting the $1.7 billion CTA system with the searches.

The CTA could split the larger mezzanine and infrastructure mandates between several managers, the RFPs say.

The mezzanine RFP requires firms to be raising a fund larger than $500 million and have a track record in at least two prior mezzanine funds.

The bank loan manager should handle at least $250 million in the strategy and have a track record of at least three years. The mandate will be benchmarked to the CSFB Leveraged Loan Index.

The infrastructure search calls for managers raising funds of at least $500 million. If the funds are an open-end structure, they should have a minimum 12-month track record. If closed-end, then the manager should be able to report performance on two prior infrastructure funds.

The full RFPs are available on the pension fund’s website. Managers can submit any questions about the searches to Marquette by Friday.