The Illinois State Board of Investment

What The Illinois State Board of Investment does

The Illinois State Board of Investment (ISBI) is a state government agency established under the Illinois Pension Code (40 ILCS 5/22A) that manages approximately $36 billion in assets on behalf of more than 186,000 beneficiaries across Illinois public retirement systems. Its core fiduciary mandate covers the defined benefit assets of the State Employees' Retirement System, the General Assembly Retirement System, and the Judges' Retirement System, and additionally includes management of the Illinois Power Agency Trust Fund and oversight of the State of Illinois Deferred Compensation Plan (a supplemental 457(b) plan for state employees, judges, General Assembly members, and certain university staff).

ISBI executes a multi-asset class investment program across seven asset classes—Global Equity (44.2% actual vs 42% target), Rate Sensitive Fixed Income (21.9% vs 22%), Private Equity (10.4% vs 11%), Real Estate (9.2% vs 10%), Private Credit (9.5% vs 10%), Infrastructure (2.8% vs 3%), and Multi-Sector Credit (2.0% vs 2%), as of March 31, 2026—through a partner-led operating model. Four discretionary strategic partners (Hamilton Lane Advisors, The Rock Creek Group, HighVista Strategies, Franklin Park Associates) manage assigned asset class mandates with full discretion to select underlying managers; two non-discretionary partners (Rumbline, BlackRock) handle passive public markets; and RVK serves as general consultant for asset allocation, monitoring, and reporting.

As a public pension investment board, ISBI is wholly owned and controlled by the State of Illinois and operates without revenue generation or fee charging to beneficiaries; its FY2027 operating budget is $6,735,419. It is governed by an eight-member Board of Trustees chaired by Terrence Healy, with senior investment leadership under Executive Director and CIO Dipesh Mehta (appointed February 1, 2024), Senior Investment Officers Scott Richards (Private Markets) and Jennifer Koelle (Public Markets), COO/CFO David Schneider, and General Counsel/CCO Patrick Hall. The organization has achieved sustained top-tier performance, ranking #1 in the American Investment Council Public Pension Study in 2020, 2021, and 2022, #2 in 2024, and among the Top 5 nationwide in 2025.

Name

The Illinois State Board of Investment

Legal name

Illinois State Board of Investment

Website

https://isbinvestment.com

Company type

Public

Founded year

1969

Operating status

Operating

Headcount range

11–50 employees

Short description

The Illinois State Board of Investment is a state government agency that manages approximately $36 billion in defined benefit pension assets and oversees the State of Illinois Deferred Compensation Plan for more than 186,000 Illinois public retirement system beneficiaries, executing a multi-asset class program through strategic investment partners.

Ownership category

akta.pro rank

Headquarters

HQ city

Chicago

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Others

Revenue model

1. Pension Fund Management: ISBI manages defined benefit assets for state retirement systems and oversees the State of Illinois Deferred Compensation Plan. As a public pension fund, ISBI does not generate revenue in the traditional sense but serves as a fiduciary managing assets for beneficiaries.

Go-to-market motion1 record

Distribution channels1 record

Marketing channels1 record

Core offering

Manages defined benefit pension assets for Illinois state retirement systems covering state employees, judges, and General Assembly members, and administers the State of Illinois Deferred Compensation Plan. Oversees more than $36 billion in assets for over 186,000 beneficiaries under the authority of the Illinois Pension Code (40 ILCS 5/22A), and also manages the Illinois Power Agency Trust Fund.

Product overview

The Illinois State Board of Investment (ISBI) operates as a unified platform managing multiple public pension and investment programs. The core offering consists of Defined Benefit Pension Management, which oversees approximately $36 billion in assets across three retirement systems serving 186,000+ beneficiaries, combined with the State of Illinois Deferred Compensation Plan (a 457(b) supplemental retirement program) and Illinois Power Agency Trust Fund management. The investment platform spans seven asset classes: Global Equity (44.2% actual allocation), Fixed Income (21.9%), Private Equity (10.4%), Real Estate (9.2%), Private Credit (9.5%), Infrastructure (2.8%), and Multi-Sector Credit (2.0%), managed through discretionary strategic partners including Hamilton Lane Advisors, The Rock Creek Group, HighVista Strategies, and Franklin Park Associates, with oversight from the Board of Trustees and general consultant RVK.

Differentiator

Problem solved

Functional benefit

Products and services

• Defined Benefit Pension Asset Management
• State of Illinois Deferred Compensation Plan

Quantifiable outcome

• ISBI ranks among top five nationwide for private equity performance
• +2 more outcomes

Named customers5 records

Segments1 record

Ideal customer profiles1 record

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Partnerships

Eight partnerships are on record, tiered core.

• Hamilton Lane AdvisorscoreChannel Partner/ Reseller/ DistributorDiscretionary strategic partner managing Private Credit, Private Equity, Venture Capital, Real Estate (Non-Core), and Infrastructure asset classes with full discretion to select underlying managers within respective mandates.
• The Rock Creek GroupcoreChannel Partner/ Reseller/ DistributorDiscretionary strategic partner managing Private Credit, Public Markets (Active), Real Estate (Core), and Real Estate (Non-Core) with full discretion to select underlying managers within respective mandates.
• HighVista StrategiescoreChannel Partner/ Reseller/ DistributorDiscretionary strategic partner managing Private Credit and Public Markets (Active) with full discretion to select underlying managers within respective mandates.
• Franklin Park AssociatescoreChannel Partner/ Reseller/ DistributorDiscretionary strategic partner managing Private Equity with full discretion to select underlying managers within respective mandates.
• RumblinecoreChannel Partner/ Reseller/ DistributorNon-discretionary strategic partner managing Public Markets (Passive) investments.
• BlackRockcoreChannel Partner/ Reseller/ DistributorNon-discretionary strategic partner managing Public Markets (Passive) and providing Risk Advisory and Software services.
• RVKcoreStrategic or Co-development PartnerGeneral Consultant providing Asset Allocation, Monitoring, Reporting, and Deferred Compensation services to ISBI.
• Illinois Central Management Services (CMS)coreStrategic or Co-development PartnerState agency that administers the State of Illinois Deferred Compensation Plan, a supplemental 457(b) plan overseen by ISBI.

Scale indicators5 records

Recent moves4 records

Expansion highlights4 records

Direct peers

• Florida State Board of Administration (SBA): Florida's investment board managing public pension (FRS) assets plus other state trust funds. Comparable to ISBI in its multi-fund consolidated mandate and broad multi-asset-class investment approach.
• Pennsylvania Public School Employees' Retirement System (PSERS): Pennsylvania's largest public pension fund, administering defined benefits for public school employees. Comparable to ISBI in scale, statutory mandate, and exposure to alternatives including private equity and real estate.
• State Teachers Retirement System of Ohio (STRS Ohio): Ohio's public pension fund for teachers, with a comparable statutory mandate and multi-asset-class approach including meaningful private equity and real estate allocations, similar to ISBI.
• California Public Employees' Retirement System (CalPERS): The largest U.S. public pension fund, also a state-government investment board managing defined benefit assets for California state employees and retirees. Directly comparable in statutory mandate, multi-asset-class structure, and LP relationships with major PE and private credit firms.
• New York State Common Retirement Fund: Manages pension assets for New York State and local government employees, making it a direct peer of ISBI in statutory mandate, asset class diversification, and large-LP relationships with institutional GPs.
• Washington State Investment Board (WSIB): Invests assets for Washington State retirement systems and other public funds. Operates with a similar lean internal team and outsources most discretionary management, paralleling ISBI's strategic-partner-led model.
• New Jersey Division of Investment: Manages pension assets for New Jersey's public retirement systems under a state-government structure. A direct peer to ISBI in mandate, governance, and use of external managers across public and private markets.
• Texas Teacher Retirement System (TRS): One of the largest U.S. public pension funds, administering defined benefits for Texas public education employees. Comparable to ISBI in mandate, AUM scale, multi-asset-class allocation, and reliance on external investment managers and consultants.
• California State Teachers' Retirement System (CalSTRS): California's teacher retirement system, a state-administered defined benefit fund operating under a similar statutory framework to ISBI. Comparable in scale, asset allocation philosophy, and use of external strategic partners and consultants.
• Iowa Public Employees' Retirement System (IPERS): Iowa's statewide public pension system, with comparable size and statutory structure. Notably relevant as ISBI Trustee Elizabeth Sanders served as IPERS CIO, providing a direct governance and operational parallel.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key highlights6 records

Customer concentration

Revenue estimate

Valuation estimate

Number of profiles

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about The Illinois State Board of Investment