The $41.8bn (€31bn) Teachers' Retirement System of the State of Illinois has appointed managers for almost $3bn of mandates, including $600m to private equity, an asset class under pressure from the recent credit crunch.

Funding sources for new private equity deals are being squeezed by the fallout from the US sub-prime mortgage crisis. Banks are struggling to syndicate the debt on leveraged buyouts because of the uncertainty and volatility of global markets. This has put a strain on their ability to provide the leverage for new private equity deals.