The decision was made after the firm recently proposed an incentive fee floor.
The new position will be responsible for all private markets strategies at the $443 billion plan.
The plan had more than $430 million in the program at the end of 2022.
The plan made the commitment alongside approving a 3% target to the asset class at today’s board meeting.
The plan will look to fill allocations to private equity, global infrastructure and real estate.
The new manager will be partially funded by reducing the portfolio of the plan’s incumbent large-cap core manager.
The firm has taken a minority ownership stake in Altan Asset Management.
Thomas H. Lee, a pioneer of leveraged buyout private equity, died on Feb. 23.
The plan will be examining the allocation structure of the portfolio as well as the current managers.
The plan asked its general investment consultant to prepare a search after an asset allocation discussion at today’s board meeting.