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Office of the Illinois State Treasurer
The Office of the Illinois State Treasurer operates as Illinois' chief banking and investment authority, distinct from the state's pension systems.
Office of the Illinois State Treasurer
The Office of the Illinois State Treasurer operates as Illinois' chief banking and investment authority, distinct from the state's pension systems. Michael Frerichs, first elected in 2014 and re-elected in 2018 and 2022, manages the state's operating fund, the Illinois Funds local government investment pool, and the state's 529 college savings plans, Bright Start and Bright Directions. His office also administers the unclaimed property program known as I-Cash. The Treasurer's investment strategy bridges public asset management with venture capital and private equity programs designed to spur in-state economic growth. The Illinois Growth and Innovation Fund (ILGIF) channels treasury capital into technology and life sciences startups through Illinois-based venture capital firms. The office also manages the Charitable Trust Stabilization Fund, which supports small non-profits, and participates in agricultural and small business lending pools. By blending custodian responsibilities with a direct development mandate, the office uses treasury funds as patient capital for early-stage companies in the region. Frerichs held the presidency of the National Association of State Treasurers in 2023, elevating his office's voice in national debates on banking access, retirement security, and climate risk disclosure. The Illinois Treasurer is a signatory to the UN Principles for Responsible Investment and participates in the Ceres Investor Network to assess climate-related financial risk across its holdings. The office maintains a physical presence with a headquarters in Springfield and a commercial office in Chicago, reflecting its dual role in state government and financial markets. A key structural differentiator is the office's use of elected authority to merge policy advocacy with direct investment activity. Unlike a traditional state pension fund with a separate board, the Treasurer acts as sole fiduciary, allowing Frerichs to direct treasury funds toward ESG shareholder resolutions, co-investment structures, and local venture funds without multi-layered committee approvals. This concentration of investment power in an elected office creates a fast-acting but politically exposed governance model uncommon among US institutional allocators.
General information
Firm type
Government / Public Body
Year founded
1818
AUM
Undisclosed
Location
Region
North America
Country
United States
City
Springfield
Corporate office
Springfield, IL, United States
Additional offices
Chicago, IL, United States
Principals
Michael Frerichs
Illinois State Treasurer and Chief Investment Officer
Sector focus
Frequently asked questions
What is the Illinois Growth and Innovation Fund (ILGIF)?
ILGIF is a program within the Illinois State Treasurer's Office that commits treasury capital to Illinois-based venture capital firms investing in technology and life sciences startups. The initiative aims to drive job creation and economic development within the state while generating a market-rate return for treasury funds.
How does the Treasurer interact with the state's pension systems?
The Treasurer's office is distinct from Illinois' public pension systems. The Treasurer manages the state's operating cash and local government investment pools, while the pension funds are managed by separate boards and investment staff. Frerichs does, however, use his elected platform to advocate on pension funding and investment policy.
Who makes day-to-day investment decisions for the Treasurer's Office?
State Treasurer Michael Frerichs serves as the Chief Investment Officer for the office, overseeing all investment policies and programs. The office employs an internal investment staff that implements strategy across cash management, fixed income, and the alternative investment programs like ILGIF.
Does the Illinois Treasurer co-invest directly in companies?
The office engages in fund commitments to Illinois-based venture capital managers through the ILGIF program, rather than executing direct company investments. These commitments function as limited partner stakes in venture funds that then deploy capital into individual portfolio companies.
What is the relationship between the Illinois Funds and the Treasurer's office?
The Illinois Funds is a local government investment pool managed by the Treasurer's office. It allows municipalities, school districts, and other local government entities across Illinois to invest their operating funds in a professionally managed pool that offers daily liquidity and competitive yields.
How does the Treasurer's ESG and sustainability policy work in practice?
Through signatory status with the UN Principles for Responsible Investment and membership in the Ceres Investor Network, the office incorporates climate risk and corporate governance factors into proxy voting and investment decisions. Frerichs has led shareholder engagement campaigns on corporate board diversity and climate disclosure.
What is the Charitable Trust Stabilization Fund?
The Charitable Trust Stabilization Fund is a Treasury program that provides low-interest loans to small non-profit organizations in Illinois. The fund supports organizations that deliver social services within communities, operating as part of the Treasurer's broader community investment mandate.
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