Illinois Pension Eyes up to $250M for Real Assets Program

The $23 billion State Universities Retirement System of Illinois is requesting information from firms that invest in private real estate, agriculture, and infrastructure.

According to Callan, which is conducting the RFI, the pension system intends to spend $150 million to $250 million in 2024.

The real assets portfolio is currently around $2.6 billion, comprised of real estate, agriculture, and infrastructure. Some managers are expected to be hired in 2024, although the primary focus remains on re-ups with current managers. The allocation to each fund is projected to range from $50 million to $100 million.

Officials are exploring open and closed fund structures for private real estate equity funds, debt funds, infrastructure funds, and agricultural equity funds.

Between 2022 and 2023, the pension fund nearly increased its intended allocation to core real assets to 8% from 4.5%. Furthermore, the non-core real assets target increased to 4% from 2.5% during the same period.

Recent real asset allocations include Blackstone Real Estate Partners VII (April 2024), Ember Infrastructure Fund II (December 2023), and Brookfield Strategic Real Estate Fund (BSREP) V (September 2023).

Don’t miss the Connect Money: Real Assets Capital Raise event on June 5 in Chicago at the W City Center. Meet real estate experts like David Scherer, co-CEO of Origin Investments.