Illinois State Board of Investment, Chicago, plans to search for non-core real estate managers, including in distressed debt, for a total $100 million commitment, according to a discussion Thursday at the board's investment policy committee meeting.
Courtland Partners, ISBI's real estate consultant, plans to seek out and screen managers and recommend in December several finalists to ISBI.
The board plans to hire multiple managers. Further information about the search process was not available at the meeting.
The search represents part of ISBI's plan to commit $200 million a year through 2022 to real estate managers.
As part of that annual target, ISBI on Thursday committed $50 million to Harrison Street Real Estate Partners VI, a fund managed by Harrison Street Real Estate Capital that is focused on off-campus student housing, medical offices, senior assisted-living housing and self-storage facilities.
Courtland Partners assisted.
In other action, ISBI hired Vanguard Group to manage the $2.1 billion in target-date funds for the nearly $4 billion Illinois State Employees' 457 Deferred Compensation Plan, replacing T. Rowe Price Group.
Meketa Investment Group, ISBI's investment consultant, recommended Vanguard. An RFP was issued last October.
Also, ISBI committed $50 million to Platinum Equity Capital Partners IV, a private equity fund.
Hamilton Lane Advisors, ISBI's private equity consultant, assisted in the search.
Both the Harrison Street and Platinum Equity commitments are subject to attorney review.