Illinois Teachers’ Retirement System, Springfield, on Friday authorized a search for the $36 billion pension system’s first real estate co-investment adviser, said David Urbanek, spokesman, in an interview.
The RFP will be issued in May, although a specific date has not been set. The RFP will be posted on the pension fund's website.
Finalists will be presented at the retirement system’s early August meeting, Mr. Urbanek said.
The size of the retirement system’s real estate co-investment pool has not been determined, Mr. Urbanek said. The teachers’ pension fund has a 14% target to real estate. The actual allocation as of Dec. 31 was 12.38%, according to meeting materials from the system’s Feb. 8-9 trustee meeting.
System trustees authorized the search at a board retreat Friday.
While system staff members have discretion for investments in traditional asset classes, board approval is required for investments in alternative investments including real estate, private equity and hedge funds, as well as for emerging managers. Mr. Urbanek said board approval will be needed for real estate co-investments.