Oklahoma Teachers’ Retirement System Launches $300M Real Estate Search 

The $24 billion Oklahoma Teachers’ Retirement System has issued a Request for Proposal (RFP) seeking core and non-core real estate investment strategies, as trustees explore a $300 million allocation to either a commingled fund or separately managed account. The search will remain open until the mandate is filled. 

The RFP is part of a broader effort to bring the pension fund’s $1.7 billion real estate portfolio closer to its 10% target allocation, which currently sits at 7%. The portfolio finished 2024 with a 7.6% loss. 

Aon is advising the system on the search. 

This move follows a recent $100 million allocation to Ares Management’s Industrial Real Estate Fund, reflecting growing interest in sector-specific and differentiated real estate strategies. 

Beyond real estate, Oklahoma Teachers’ has significant exposure to private markets, with $1.5 billion in private equity and $752 million in private debt. In 2024, the system committed $200 million each to two previously selected credit strategies: Ares Private Credit Fund O and KKR Scissor-Tail Credit Fund, both of which received initial allocations in 2022 totaling $500 million. 

The new real estate search signals a continued push by the pension system to rebalance toward long-term strategic targets while seeking diversification and performance recovery following a challenging year for property valuations.